House Hacking a 4-plex using a VA Loan

[Christopher Aguilera]

Good morning BP, 

I need advice and help analyzing this deal. 

So my strategy is house hacking a 4-plex using my VA loan at 2.25% interest rate. I'm looking at a 4-plex where the location is B Neighborhood and the building is probably C- needs work.

Purchase price 1,450,000

Down payment $0

Interest rate 2.25%

Monthly Expenses 702 (water, garbage, gardener, Maintenance)

Laundry Income $50 a month

Taxes are $1417 a month calculated for tax assessor website

Current rents: Unit A (3/1.5) $2100 Unit B (2/1.5) $1800 Unit C (2/2) $1654 Unit D (2/2) $1690 Total = $7244

Market Rents: Unit A (3/1.5) $2400 Unit B (2/1.5) $2100 Unit C (2/2) $2150 Unit D (2/2) $2150 Total = $8800

The lender is considering taking 75% of the rental income which is 5,590 and I will go in to the cheapest unit C and pay the rest of the mortgage & Interest plus all expenses. 

Let me know what you think??? and Just know that i'm going to be house hacking for 12 months and move to raise all the rent to market level on the unit I will live in.

Thank you for your help!