Advice on House Hacking in Chicago for a Veteran

Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes

Quote from @In Cho:

Hi,

I'm a veteran looking to get started with house hacking in the Chicago area, and I'm hoping to get some advice from more experienced investors. Specifically, I'm wondering if it's possible to use a VA loan to finance a duplex or other multifamily property for house hacking. This is also my first home purchase.

Assuming I can use a VA loan, I'm also wondering how much I might expect to pay for a duplex in a reasonably safe neighborhood in the Chicago area. I'm hoping to charge between $1,500 and $2,000 per month in rent for one side of the duplex, so I'm wondering what kind of price range I should be looking at. How much down payment should I prepare?

Finally, I'm curious to hear from anyone who has experience with house hacking in the Chicago area. Is this even doable, or are the prices and competition too high? Are there certain neighborhoods or suburbs that are particularly good for house hacking?

Thanks in advance for any advice you can offer. I'm looking forward to learning from this community and getting started with my real estate investing journey.

Best regards,

Total Newb

Welcome to the forums! You can certainly use a VA loan to buy a 2-4 unit property to house hack. The rent that you can charge per unit will depend on the location, beds/baths, and amenities but that being said $1500-$2000 for one unit is a realistic rent target for a number of neighborhoods on the NW side. Have you spoken to a lender? If not, that's a good starting point so you can determine your buying power and then from there you can target neighborhoods that fit your budget. I can recommend an experienced VA lender if you need one.

The great thing about VA loans is that you can put 0% down and you can get some large seller concessions which really reduce your cash due at closing to practically nothing. In fact, I've had VA buyers get back money at closing because they asked for a large seller credit in their offer.

Personally, I'm house hacking in Belmont Cragin and open to sharing my experience.

3 Reply

Chris Davidson

Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes

3y

Quote from @In Cho:

Hi,

Yes you can use the VA. Look at the market and see what it is doing. hoping to charge 1500-2000 may be unrealistic or may be spot on. However it all depends on your payment and other cost. You can do 0% down on the VA, but that will result in a higher payment. Reach out to some folks in your area and have some conversations and see what is and isn't working. Set some timelines to check in and make sure you are getting closer to your goal.

Best of luck and keep up the work!

1 Reply

In Cho

Member since 2023 · 4 posts · 3 votes

3y

Quote from @Paul De Luca:

Quote from @In Cho:

Hi,

I'm a veteran looking to get started with house hacking in the Chicago area, and I'm hoping to get some advice from more experienced investors. Specifically, I'm wondering if it's possible to use a VA loan to finance a duplex or other multifamily property for house hacking. This is also my first home purchase.

Assuming I can use a VA loan, I'm also wondering how much I might expect to pay for a duplex in a reasonably safe neighborhood in the Chicago area. I'm hoping to charge between $1,500 and $2,000 per month in rent for one side of the duplex, so I'm wondering what kind of price range I should be looking at. How much down payment should I prepare?

Finally, I'm curious to hear from anyone who has experience with house hacking in the Chicago area. Is this even doable, or are the prices and competition too high? Are there certain neighborhoods or suburbs that are particularly good for house hacking?

Thanks in advance for any advice you can offer. I'm looking forward to learning from this community and getting started with my real estate investing journey.

Best regards,

Total Newb

Welcome to the forums! You can certainly use a VA loan to buy a 2-4 unit property to house hack. The rent that you can charge per unit will depend on the location, beds/baths, and amenities but that being said $1500-$2000 for one unit is a realistic rent target for a number of neighborhoods on the NW side. Have you spoken to a lender? If not, that's a good starting point so you can determine your buying power and then from there you can target neighborhoods that fit your budget. I can recommend an experienced VA lender if you need one.

The great thing about VA loans is that you can put 0% down and you can get some large seller concessions which really reduce your cash due at closing to practically nothing. In fact, I've had VA buyers get back money at closing because they asked for a large seller credit in their offer.

Personally, I'm house hacking in Belmont Cragin and open to sharing my experience.

Thank you Paul!

1 Reply

In Cho

Member since 2023 · 4 posts · 3 votes

3y

Quote from @Chris Davidson:

Quote from @In Cho:

Hi,

Yes you can use the VA. Look at the market and see what it is doing. hoping to charge 1500-2000 may be unrealistic or may be spot on. However it all depends on your payment and other cost. You can do 0% down on the VA, but that will result in a higher payment. Reach out to some folks in your area and have some conversations and see what is and isn't working. Set some timelines to check in and make sure you are getting closer to your goal.

Best of luck and keep up the work!

Thank you Chris!

1 Reply

Ben Einspahr

House Hacking Specialist · Denver, CO · Member since 2016 · 411 posts · 396 votes

3y

@In Cho, YES! VA loans are the one exception for multifamily house hacking with low money down.
There are a couple downsides to multifamily house hacking though :

1. they typically can take some money to get rent ready b/c they are typically sold by investors as previous rentals

2. Much more competition. You are competing not only with HH'ers but investors as well.

Now this is for Denver so may not be the same for Chicago.

Here is what I would do:

1. connect with agent that is familiar with HH'ing and has a solid track record.

2. connect with a lender to see how much you can get pre-approved for. (if you find a good agent, they will bring you the rest of the team you need. If not, find a new one)

3. start analyzing. Ill DM you the spreadsheet I use. Will work in all markets, not just Denver.

Best of luck and thank you for you service!

1 Reply

In Cho

Member since 2023 · 4 posts · 3 votes

3y

Quote from @Ben Einspahr:

@In Cho, YES! VA loans are the one exception for multifamily house hacking with low money down.
There are a couple downsides to multifamily house hacking though :

1. they typically can take some money to get rent ready b/c they are typically sold by investors as previous rentals

2. Much more competition. You are competing not only with HH'ers but investors as well.

Now this is for Denver so may not be the same for Chicago.

Here is what I would do:

1. connect with agent that is familiar with HH'ing and has a solid track record.

2. connect with a lender to see how much you can get pre-approved for. (if you find a good agent, they will bring you the rest of the team you need. If not, find a new one)

3. start analyzing. Ill DM you the spreadsheet I use. Will work in all markets, not just Denver.

Best of luck and thank you for you service!

Wow! Thanks Ben!

0 Reply

John Warren

Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes

3y

@In Cho I think the VA loan is an amazing cheat code for investors. I have several clients that have used it multiple times, and it is an amazing way to build wealth with very little money in your pocket. @Alejandro Calixto has used it very well and has picked up nice buildings in easy to manage areas. You should connect with him and other local investors who have used the VA to find out what they like and don't like.

3 Reply

Victor SoBusiness Member

Real Estate Agent · Chicago, IL · Member since 2017 · 325 posts · 193 votes

3y

Quote from @In Cho:

Hi,

I'm a veteran looking to get started with house hacking in the Chicago area, and I'm hoping to get some advice from more experienced investors. Specifically, I'm wondering if it's possible to use a VA loan to finance a duplex or other multifamily property for house hacking. This is also my first home purchase.

Assuming I can use a VA loan, I'm also wondering how much I might expect to pay for a duplex in a reasonably safe neighborhood in the Chicago area. I'm hoping to charge between $1,500 and $2,000 per month in rent for one side of the duplex, so I'm wondering what kind of price range I should be looking at. How much down payment should I prepare?

Finally, I'm curious to hear from anyone who has experience with house hacking in the Chicago area. Is this even doable, or are the prices and competition too high? Are there certain neighborhoods or suburbs that are particularly good for house hacking?

Thanks in advance for any advice you can offer. I'm looking forward to learning from this community and getting started with my real estate investing journey.

Best regards,

Total Newb

Househacking definitely works in Chicago! I’ve househacked for 6 years now and acquired ~10 units this way. I’d be happy to share my experience!

Victor So Real Estate LLC517 Reviews

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2 Reply

In Cho

OP

Member since 2023 · 4 posts · 5 votes

3y

Quote from @Victor So:

Quote from @In Cho:

Hi,

I'm a veteran looking to get started with house hacking in the Chicago area, and I'm hoping to get some advice from more experienced investors. Specifically, I'm wondering if it's possible to use a VA loan to finance a duplex or other multifamily property for house hacking. This is also my first home purchase.

Assuming I can use a VA loan, I'm also wondering how much I might expect to pay for a duplex in a reasonably safe neighborhood in the Chicago area. I'm hoping to charge between $1,500 and $2,000 per month in rent for one side of the duplex, so I'm wondering what kind of price range I should be looking at. How much down payment should I prepare?

Finally, I'm curious to hear from anyone who has experience with house hacking in the Chicago area. Is this even doable, or are the prices and competition too high? Are there certain neighborhoods or suburbs that are particularly good for house hacking?

Thanks in advance for any advice you can offer. I'm looking forward to learning from this community and getting started with my real estate investing journey.

Best regards,

Total Newb

Househacking definitely works in Chicago! I’ve househacked for 6 years now and acquired ~10 units this way. I’d be happy to share my experience!

Thank you! I’ll send a DM.

0 Reply

In Cho

OP

Member since 2023 · 4 posts · 5 votes

3y

Quote from @John Warren:

@In Cho I think the VA loan is an amazing cheat code for investors. I have several clients that have used it multiple times, and it is an amazing way to build wealth with very little money in your pocket. @Alejandro Calixto has used it very well and has picked up nice buildings in easy to manage areas. You should connect with him and other local investors who have used the VA to find out what they like and don't like.

Thank you!

0 Reply

Blake Novotney

Real Estate Agent · Wilmington, NC · Member since 2021 · 166 posts · 116 votes

3y

You absolutely CAN use a VA loan to house hack! Keep in mind you can also search with the criteria "ADU" or "In-law" apartments over a garage. That will hopefully give you some more options.

Definitely check this out if you haven't yet, Brandon Turner's post on house-hacking:

https://www.biggerpockets.com/...

2 Reply

In Cho

OP

Member since 2023 · 4 posts · 5 votes

3y

Quote from @Blake Novotney:

You absolutely CAN use a VA loan to house hack! Keep in mind you can also search with the criteria "ADU" or "In-law" apartments over a garage. That will hopefully give you some more options.

Definitely check this out if you haven't yet, Brandon Turner's post on house-hacking:

https://www.biggerpockets.com/...

Thank you Blake!

0 Reply

Ryan ThomsonBusiness Member

Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes

3y

@In Cho You can use your VA loan for a duplex and 0% down. You could go to a fourplex with 0% down with the VA loan. the VA loan is the most powerful house hacking loan product on the market right now.

@Paul De Luca is an awesome realtor in the Chicago area that works with house hackers.

The Assumable Guy544 Reviews

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4 Reply

In Cho

Member since 2023 · 4 posts · 3 votes

3y

Quote from @Ryan Thomson:

@In Cho You can use your VA loan for a duplex and 0% down. You could go to a fourplex with 0% down with the VA loan. the VA loan is the most powerful house hacking loan product on the market right now.

@Paul De Luca is an awesome realtor in the Chicago area that works with house hackers.

Thank you!

1 Reply

Jonathan KlemmBusiness Member

Moderator

Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes

3y

Hey @In Cho - Welcome to the Chicago BP Forums! I really appreciate your service to our country!

I love house hacking and believe it's the easiest way to get started in real estate if your situation allows it. You've got a ton of great advice above so I don't have much to add on that front....Yes, use VA loan to house hack. Yes, you can and should house hack in Chicago.

My partner and friend @Edgar Barbosa is also a veteran, fellow house hacker/investor, and realtor here in Chicago.....you guys should definitely connect. Additionally, one of my good buddies @Doug Spence is active duty air force and mentors new investors.

[email protected]

Quality Builders4.968 Reviews

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0 Reply

Hamp Lee IIIPro Member

Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes

3y

You can find info on VA loan limits here:

https://www.va.gov/housing-***...

0 Reply

Saundra Bethley

Member since 2019 · 4 posts · 1 vote

2y

@Victor So Good morning, will you please share your experiences with me as well? I've purchased my first duplex 4 years ago and am looking to purchase another next year. I've been asking for insight on how to use my VA loan to build a rental portfolio but haven't met anyone who's been successful at it.

0 Reply

Ryan ThomsonBusiness Member

Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes

2y

@In Cho I would reach out to @Paul De Luca. He's a great house hacking agent in Chicago that could walk you through all of these questions.

The Assumable Guy544 Reviews

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Advice on House Hacking in Chicago for a Veteran

Advice on House Hacking in Chicago for a Veteran

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