House-hacking and VA Loan

[Sara Hill]

Background: I am looking into using a VA loan to purchase a single-family home. I am hoping to help cover my mortgage with a couple roommates by using the house hacking strategy--not necessarily looking for any cash flow, just paying off part of it at least.

I am looking for any information, broad or specific, on how to use the house hacking strategy while using a VA loan. Is it allowed? Do I need to clear it with the VA? Extra paperwork I need to be aware of?

Any information would help! Thanks in advance! 

[Nicholas Glatter]

Hi Sara, I just purchased my first property in San Diego using the VA loan. I currently rent out all 3 bedrooms and I live in the house myself. My biggest recommendation is to not buy at the top of the market. I'm able to make around 200$ cash flow with all rooms rented and about 1200$ when I move out.

My main concern is finding someone who will manage the property by the room when I leave. The house will not cash flow at all if I rent as an entire unit which will pose a possible problem down the road.

With that being said, make sure you are in an area where people want to be. This will make finding tenants pretty easy and you will hopefully never have to consider renting out the place as one unit.

With multiple people in one house, it didn't take long for me to hire a cleaning service to come in twice a month and a lawn service to stop by once a month. The mess in the home piles up fast. I've included general cleanliness in my listing and lease agreements but people show their best intentions when you interview them but don't always hold up the standard when they get comfortable in their new home.

As far as the legality of the situation, I've not researched too much into it (probably and oversight on my part). I intend to report the extra earnings at the end of the year which is probably the most important part.

Good luck out there. The process of getting the house and renting it hasn't been too stressful but theirs definitely a lot of free time you will have to give up to get things off the ground.