My Journey with the VA Home Loan: Part 2 — Buying My First Duplex
- lnguyen45
- Feb 4
- 4 min read
Welcome back to part two of my real estate portfolio journey! In part one, I covered how I got started in real estate, and now I want to dive into how I purchased my first duplex while on active duty, utilizing my VA loan while still owning another property.
The Journey Begins: From Condo to Duplex
This story starts in 2016, two years after I bought my first property, a condo. Between 2014 and 2016, during my time on deployments while stationed on the USS Michigan, I worked on renovating my condo. This experience taught me valuable renovation skills, from flooring installation to building a butcher block countertop and even painting. Along the way, I made expensive mistakes but gained a deeper understanding of real estate and financing. YouTube is an amazing resource.
During this period, I realized I needed more funds to continue my condo renovations. This led me to research financing options, where I discovered the Home Equity Line of Credit (HELOC). A HELOC allows homeowners to access a portion of their home's equity as a revolving line of credit. This funding helped me complete my condo renovations while maintaining financial flexibility.
Discovering BiggerPockets & The Power of the VA Loan
In early 2016, I began researching my next real estate move. I stumbled upon BiggerPockets, an online forum for real estate investors. Through their military investing section, I learned that I could use my VA loan again without selling my condo. At the time, I didn’t fully understand the details of my VA loan benefits, but after extensive research, I realized I had more options than I initially thought.
I approached the bank that had helped me with my first property to inquire about using my VA loan again. Initially, they told me I couldn’t, but oddly enough, they still issued me a pre-approval letter. This contradiction was confusing, but I decided to move forward with my plans. What's the worst that can happen?
Finding the Right Duplex & Negotiating the Deal
I had a clear goal: buy a duplex so I could live in one unit while renting out the other. This strategy, commonly known as house hacking, allows homeowners to generate passive income while reducing their housing expenses.
After identifying a duplex I liked, I submitted my first and only offer, which was accepted. The process wasn’t without hurdles—during the inspection, we discovered the roof needed to be replaced. The seller, an electrical contractor, offered to handle the repairs himself, but I insisted on hiring a professional roofing company. After some negotiations, we agreed to raise the purchase price slightly to split the cost and use an escrow holdback to ensure the roof was replaced after closing.
Managing My First Rental Property
Once the purchase was finalized, I moved into one unit while keeping the existing tenant in the other. I also took on a roommate to help cover expenses. My condo was fully rented out. Between the two properties, I generated enough cash flow to where my military paycheck, with extra pays and all, didn't have to pay for any housing expenses.
Over time, the duplex proved to be a great investment. The rental income covered the mortgage, and I had little to no out-of-pocket housing expenses for over a year. Eventually, I moved out and rented both units, which further increased my cash flow. In the last couple of years of owning that duplex, it generated about 1100$ a month in cash flow.
Leveraging Refinancing & Lessons Learned
In 2020, I took advantage of historically low interest rates and refinanced my duplex using the VA IRRRL (Interest Rate Reduction Refinance Loan). This streamlined process allowed me to lower my interest rate from 3.8% to 2.25%, saving me around $250 per month.
One major lesson I learned was about VA loan entitlement. I was initially misinformed that refinancing my condo out of a VA loan would restore my entitlement, which wasn’t the case. To fully restore a VA loan entitlement, you must either sell the property or use a one-time restoration. This mistake cost me a small increase in my monthly payments, but I was still able to make the numbers work. Luckily, I didn't go thru with the one time restoration.
Final Thoughts & Advice for Investors
Looking back, purchasing a duplex was one of the best financial decisions I made. While I could have opted for a triplex or fourplex for even greater cash flow, I appreciated the manageability of a duplex. It was easier to maintain, required less capital investment, and still provided significant returns.
For those looking to start their real estate journey, my biggest advice is:
Educate Yourself – Use resources like BiggerPockets to learn from experienced investors and industry experts. Bank employees can only get you so far.
Leverage the VA Loan – If you qualify, this is one of the best financing tools
available. Just got to be informed of the rules.
Be Strategic with Renovations – If renting out a property, focus on durability and cost-efficiency rather than luxury upgrades. Repairs will scale depending on the quality of the upgrade.
Plan for the Long-Term – Understand how your financing decisions will impact your ability to scale your portfolio. The duplex proved to be a great cash flow property as well as growth in the equity at the same time. It was the best of both.
Real estate investing has been a game-changer for me, helping me transition from active duty to becoming a loan officer while providing financial security. If you’re considering investing, take calculated risks and keep learning. Hopefully, my story provides some insights and inspiration for your journey!
Thanks for reading, and stay tuned for more insights!
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