MF House Hack w/ VA Loan

[Shawn Tuma]

I am looking for strategies and or guidelines to follow when it comes to using a MF for house hacking. I'm currently looking at using a VA loan for purchasing a duplex to live in one side & rent the other.

However in this market, it seems like even after I move out & into another property, most of the duplexes I've looked at won't be positive cash flowing, or break even. Many variables seem to be the cause of this to include house price, property taxes, interest rates, etc.

I really want to utilize my VA loan for MF properties & live in one portion and rent the others. What are your suggestions & strategies for making it work, so that it isn't costing me money in the short term & long term???

[Jonathan Greene]

You want to look for uneven multifamily houses to house hack so you aren't wasting bedrooms in your unit and so you don't have to room hack. This means a 3/2 and a 1/1 instead of a 2/1 and a 2/1 since you can live in a smaller space to make more money. You also have the options of the 2 + 1 which is a 2F with a boarder unit that an owner can live in, but likely can't rent after you leave so it's only a temporary solution depending on how stringent the municipality is.

Your VA gives you lots of options, but you won't cash flow if you use at 0 percent down because rates are too high. If you have savings, you can still utilize the VA and put more down and that will increase your cash flow in the short and long-term.