Large VA Loan Strategy

[Matt Guptill]

TLDR: Goal is to buy a financially sound property (multifamily, long term appreciation, value add ideally) for 2-4 million with a zero down VA loan in Hawaii.

Hey everyone, I've been a long time listener/reader, this is my first post seeking advice on a fairly unique strategy I've been trying to execute over the past year. With the VA recently removing the $ cap I have been researching strategies to maximize the VA loan and capture as much real estate as possible with zero money down (I'm also exempt from the funding fee).

About a year ago my wife and I significantly increased our income allowing us to work remote and take out a VA loan for just over 2 million where we live in Austin or about 3 million in Hawaii (or more depending on rental income). Like so many others we absolutely love Hawaii and would like to purchase a property on Maui or Oahu to hold long term. We could buy in either HI or TX market however we're considering the Hawaii market for this purchase as we plan to live there (now/possibly retire there in the distant future) and could capture more real estate with this loan vs the Austin market.

Goal: with this in the end is almost entirely for a long term hold appreciation play so although cashflow would be nice it's not a requirement as we have about a million in liquid assets to weather unforeseen financial storms (or buy other properties).  We also do not care at all what type of property we live in and can get by with a 1br if it meant a better purchase financially.

Background: I'm relatively well versed in finance, analyzing deals, ect.. however am still a novice on actually executing on deals.  The Austin market has been tricky to find a 2-4 unit property around the 2 million mark so I've been exploring several: value add, high value land (with a house on it), multiple unit, and other creative ways to maximize this but to little avail over the past year.  

My question: Things get complicated in the fact that I notice few 2-4 unit properties (in Maui at least) however if you were going to buy with the above goal in mind, what type of: strategy, property, market, whatever, would you recommend?

Although I've been researching the Hawaii market and spoken with a few folks over the past few weeks more heavily, I'm relatively unfamiliar with it vs say the Austin market so I appreciate any insight and thank you in advance!

[Joel Bongco]

Aloha @Matt Guptill - I was just in Austin a few weeks ago, loved it! You may want to dip your toe in the water and start small and work your way up. An option is to go for a Ohana Zoned Home that has a few units. In Hawaii, they are often called "monster homes" where homeowners buildout their existing homes to house family members or house hack for cashflow. We have a unit that we just put on contract that has (2-3 units). In my scenario, you can do a seller carry back and fund the rehab with Private/Hard Money. Upon completion, REFI it with your VA Loan. I recommend that you get connected with the Hawaii Real Estate Investor Community here as there are lots of slippery slopes doing REI in Hawaii. Please DM me if you would like to discuss over ZOOM or call. Mahalo and Blessings, Joel