Investor · Pensacola FL · Member since 2019 · 8 posts · 4 votes
Hello everyone! My name is Cole Beauchemin and I am currently a Cadet at the United States Coast Guard Academy. Though I am still in college, I am determined to house hack a 2-4 unit multifamily unit using the VA loan in whichever city I am stationed. I will be graduating in 2021 as a Mechanical Engineer. Until then, I am reading as much as a can and analyzing one property a day. Looking forward to learning as much as I can and meeting new people! Please reach out if you are from the area as I would love to meet you!
Real Estate Agent · Hartford, CT · Member since 2019 · 12 posts · 14 votes
6y
Hi @Cole Beauchemin - Great thinking! I started my college career at UConn Avery Point and have spent all my summers growing up in Niantic, CT. Last year I took the leap and bought a 3-family home in Hartford, CT to house hack and it has been a completely rewarding experience. For me, it didn't make financial sense to purchase a 2 family instead of a 3 family with an ultimate end goal of having absolutely zero monthly expenses. I saw it as having only half of the opportunity. I live on the first level with a private yard, airbnb the second unit and have traditional leased tenants in the third. With Airbnb, I have flexibility and bring in additional income monthly that I couldn't get from a traditional lease. The traditional leased tenants provide an obvious stability. Simply put - one unit pays the mortgage and the other pays expenses, utilities, vacancy and upgrades/improvement costs.
Real Estate Agent · West Hartford, CT · Member since 2016 · 449 posts · 476 votes
6y
@Cole Beauchemin thank you for your service and congrats on getting started. I grew up in New London County and know the area well. I invest and live up in the Hartford county now but think New London is a great area to invest in. Between, the Coast Guard, Sub Base, EB, Pfizer, Milestone, there is a massive rental market. Just be careful what streets you look at- as I am sure your aware, New London like many other cities can be very street by street dependent.
I house hacked my first duplex after graduating college 5 years ago and it was probably the best financial decision I made. Not only are you building equity, but if you buy right, you should have very little out of pocket expenses and 'living for free' which will tremendously help you compound your capital and save for the next one.
If I could go back over and do it again I would look to house hack a 3-4 family rather than a 2.
Let me know if you have any questions or I can be of any help!
Investor · Pensacola FL · Member since 2019 · 8 posts · 4 votes
6y
@Michael Doherty Thank you for the warm welcome! I see what you mean about the city being street dependent, there are certainly areas I avoid for good reason.
You said if you were to do it again you would do a 3-4 unit instead of a 2 unit. Could you explain your reasoning? Is that due to the higher cash flow and less risk associated with having more units? I ask because it seems like 3-4 family units are harder to come by than the duplexes in CT and tend to be in the less desirable neighborhoods.
Real Estate Agent · West Hartford, CT · Member since 2016 · 449 posts · 476 votes
6y
@Cole Beauchemin I would do 3-4 units because a FHA loan (not sure about VA) allows you to purchase up to 4 units. So if your goal is to scale and grow your portfolio, I would rather choose to house hack a 4 plex with 3.5% down over a duplex (if you have the capital).
Why not take advantage of your first time home buyer low down loan option and use it to the fullest?
Investor · North Stonington, CT · Member since 2014 · 393 posts · 228 votes
6y
@Cole Beauchemin Welcome to the site. We have a small group that tries to meet once a month to talk about investing. We have had a few speakers come and talk. When we have speaker, we have met at East Lyme High School and other times we have met at a few different restaurants. The meetings are free to attend. I'll send you PM.
Real Estate Agent · Hartford, CT · Member since 2019 · 12 posts · 14 votes
6y
Hi @Cole Beauchemin - Great thinking! I started my college career at UConn Avery Point and have spent all my summers growing up in Niantic, CT. Last year I took the leap and bought a 3-family home in Hartford, CT to house hack and it has been a completely rewarding experience. For me, it didn't make financial sense to purchase a 2 family instead of a 3 family with an ultimate end goal of having absolutely zero monthly expenses. I saw it as having only half of the opportunity. I live on the first level with a private yard, airbnb the second unit and have traditional leased tenants in the third. With Airbnb, I have flexibility and bring in additional income monthly that I couldn't get from a traditional lease. The traditional leased tenants provide an obvious stability. Simply put - one unit pays the mortgage and the other pays expenses, utilities, vacancy and upgrades/improvement costs.
First off, welcome! You have absolutely stumbled on the best resource for REI on the net.
As a service member myself I will tell you that although the USCG does allow you to stay in one area a little more than some other branches, you will most likely end up moving. So, when you do your numbers, be sure to include a PM fee even though you may not use one at the beginning, you most likely will need or want one 3 years down the road.
Also, the VA now has a product similar to the FHA 203k loan for renovations so if truly house hacking is the desire and you are not afraid of a little sweat equity, then this may be an good route for you to take.
@Mat O'Grady does a great job with those meetings and I know liberty is tough for you, try and make every effort to attend. Great place to just pick peoples brain and get real world answers. Not that the answers on here are not real world, but it's just always better to get the info in person in my opinion.
Lastly, You still have some time in the area, you can always ask one of us to see current projects or get involved with a deal by observing if you wish as well. I will make myself available to you during a weekend if you want to sit down for coffee and chat, go over numbers or whatever you wish.