My First House Hack Using A VA Loan

[Eric Caputo]

Investment Info:

Single-family residence other investment.

Purchase price: $182,500
Cash invested: $3,500
Sale price: $185,000

This property is my first house hack. It is a 3 bed 2 bath single-family house ~1,600 sq. ft on a half-acre lot. Using my VA loan, I was able to buy the property for $0 down and I paid ~$3,500 for closing costs. I have two roommates that rent out the extra rooms for $500 each. This offsets my mortgage and the extra I am saving for expenses. Utilities are split per person in the house.

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

I wanted to start Investing as soon as possible. Being in the military, this was a no-brainer strategy.

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

Found the deal on the MLS. With the market being the way that it is (Early 2021) I offered $180,000 initially with a $1,500 earnest money attached.

How did you finance this deal?

VA loan

How did you add value to the deal?

The house was not kept up very well when it came to cleanliness and yard work. Cleaned the property and painted, and little by little getting the yard in good shape.

What was the outcome?

Two roommates and not paying rent.

Lessons learned? Challenges?

Should have negotiated more. The property had a really bad pet smell throughout the house and the renovations were done subpar. could have used all this as leverage to get a lower price.

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

I worked with a real estate professional but I would not recommend them to investors because there was very little drive and communication between us. they were comfortable and not HUNGRY.