VA Loan to Long Term Rental

[Joshua Dupler]

Investment Info:

Single-family residence buy & hold investment in Harrisburg.

Purchase price: $259,000
Cash invested: $5,000

In 2018 my wife and I purchased a home with a VA Loan and lived in it until 2021, when we purchased a 2nd home and moved to that second home which also had a VA Loan. We didn't plan on getting in to real estate, but before we could sell our first home we had close family who wanted to rent it from us! We are very thankful this happened as this initiated our love for real estate. We have been renting that property for nearly 3.5 years now, and are cash flowing $550.

What made you interested in investing in this type of deal?

We sort of fell in to this investment. We purchased the property using a VA loan intending on living in it for a long time. When another property became available in my home town, we moved back and purchased a second home. Prior to moving out of the first home, we were approached by family friends who wanted to rent our first home.

How did you find this deal and how did you negotiate it?

Approached by family friend

How did you finance this deal?

VA Loan

How did you add value to the deal?

Since they were family friends - we rented to them less than market value. The deal was they would get this below market rent but they would take care of all expenses on the property and we had the peace of mind that it wasn't getting destroyed by bad renters. This peace of mind was crucial for us and we may not have entered the landlord world if we wouldn't have had that peace of mind. We are now on to our second renters and are cash flowing much more now.

What was the outcome?

We were able to hold on to the property during the housing market boom from 2021 to current.