Using VA Renovation Loans to buy otherwise unfinanceable homes...

[Pat Caruso]

Hey BP, 

Has anyone used the VA renovation loan as a repeatable way to house hack, bring off-market deals onto the market, and move in with major equity?

I'm thinking about calling owners of some of the beat up multifamilies in my buybox (Buffalo, NY) to see if they'd be willing to sell. My advantage is that I can use the VA Renovation Loan to roll rehab costs back into the loan and buy properties that might not otherwise qualify for conventional financing. This seems like it could be a win win. The seller gets to get rid of a property they wanted to sell, but couldn't to a conventional buyer. I get to buy a discounted property, VA licensed contractor rehabs it, and I move in with equity. Everyone wins.

Are there any experienced investors who are succeeding with this? Or anyone who's failed? I'm interested in different perspectives. Please feel free to play devil's advocate and poke holes in this strategy too.