House Hacking First Property with the VA Loan

[Wyatt Ball]

Investment Info:

Single-family residence buy & hold investment in Colorado Springs.

Purchase price: $390,000

This is my first investment property. It's a newly renovated 5 bed 3 bath house. I got stationed at Fort Carson in Colorado Springs and took advantage of the VA loan to purchase this property for $0 down. Houses in this current market are going for 15-20k over asking price, however I had a great agent and managed to get this house for the appraisal value. I'm currently living in the master bedroom and renting out 3 of the other rooms. The rent I collect not only pays for the mortgage but also gives me $400 cash flow per month. A good house hack in order to get me started on my real estate investment journey!

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

I had a friend who encouraged me to use my VA loan to make some extra money per month.

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

I found it through Realtor.com and my agent is super well connected in the area and managed to help me get it for roughly its appraisal value.

How did you finance this deal?

VA Loan

How did you add value to the deal?

I am currently renovating the outdated master bathroom, and adding a half kitchen to the basement. I'm also getting rid of the popcorn ceilings and updating the kitchen as well. Before I sell I will repaint the outside of the house as well.

What was the outcome?

$400 a month in cash flow, plus the value has already gone up 8% and I've only owned the house for 4 months!

Lessons learned? Challenges?

Realized how much it takes to maintain your own property, always finding projects to keep me busy on the weekends. Most everything can be found on YouTube.

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

Yes.