curious about financing options

[Austin White]

Hello Everyone! I'm a first time home buyer looking to house hack a 4bedroom 3 bath single family home in Killeen. I'm curious about how I should finance this home. Does it make sense for me to use my VA loan and not cash flow or I put 40k down and be able to cash flow me 150-200/ month? Equity is obviously important, but so is cash flow. Any advice?

[Lawrence Potts]

Quote from @Austin White:

Hello Everyone! I'm a first time home buyer looking to house hack a 4bedroom 3 bath single family home in Killeen. I'm curious about how I should finance this home. Does it make sense for me to use my VA loan and not cash flow or I put 40k down and be able to cash flow me 150-200/ month? Equity is obviously important, but so is cash flow. Any advice?

Cashflow depends…are you trying to cashflow while living there? Or are you asking if it’ll cashflow once you move out. The point of house hacking isn’t to cashflow (although if you can get it, take it), it’s to reduce your living expenses. You don’t get taxed on saving money.

Just remember too: what would your cash on cash (CoC) be on a $40,000 investment (not including closing costs) if you were cashflowing $150/month? It would take you about 22 years to recoup that money. Obviously I’m not considering appreciation and equity & principal paydown, but you get the point.

I’d buy to house hack with my VA any day if I could.

Hope that helps!