My First househack using 0 money down VA Loan and introduction into real estate investing. Me and a friend from m command both picked up E5 at the same time and applied for BAH. I wanted to live for free and not rent so I decided to look for a duplex, rent out one side and live in the other with a roommate. Fast forward 3 years, I have 2 new roommates each paying me 750 for a room, and a tenant downstairs paying 1300 a month producing an AWESOME cash flow.

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

I made E5 qualifying me to receive BAH from my command. I didn't want to rent out and pay someone else's mortgage and wanted to pay towards something *I* could own. I also wanted to live for free and pocket this housing allowance as extra income. I decided to get a duplex VS a SFH. Rent out one side, and live in the other with a roommate adding extra income on top of a tenant.

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

Realtor was referred by my chief. She found the deal on MLS and through interviewing seller, discovered he was a distressed seller. I negotiated it with a lowball offer (I thought it was a lowball) offering 15k under market price. He took it immediately. I learned I should have offered lower.

How did you finance this deal?

VA Loan 0 down @ 3.75% interest

What was the outcome?

Bought a duplex VERY slightly under market. Had a tenant in place who remained until she passed away. Had a roommate to turn it from a break even, to a cash flow property. Got a 2nd roommate shortly after and was able to raise market rent to produce a VERY nice cash flowing property.

Lessons learned? Challenges?

I would have negotiated a bit more aggressively. While I secured a good deal on the property and the inherited tenant was a bonus (bless her soul, she was AWESOME), I learned after the fact that the seller was distressed. Had I been introduced to BP and more information ahead of time, I would have had better opportunity to negotiate as he took my very first offer without a counteroffer (meaning I offered too high)

Also I would have checked ALL lending options. I only chose my first lender.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did. I also worked in haste as I didn't really interview her. I just wanted a house, get the closing documents, and submit them to the command to get my housing allowance. Just picked her up from word of mouth. I was lucky as she was excellent, and she did in fact work with more investors as opposed to homeowners. Highly recommend her.

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My First House Hack! (Introduction to Real Estate Investing)

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