How I Transformed My First VA Loan into a Six-Figure Triumph
Imagine just returning from a deployment, fresh off the exhilarating high of marrying the love of your life. What's the next adventure? For me, it was diving headfirst into real estate by purchasing a Quadplex!
Little did I know that as a Veteran, I had the incredible privilege of utilizing the VA Loan—a game-changing opportunity that would shape my real estate journey.
It all began during my downtime in Afghanistan when I caught the real estate bug. As I immersed myself in resources like BiggerPockets and devoured Dave Ramsey's Total Money Makeover, I realized that personal finances and investing go hand in hand. But there was one roadblock—I didn't have much cash to make a conventional purchase. That's when I discovered other Veterans using the VA Loan to purchase quadplexes. Intrigued and motivated, I knew this was my chance!
Upon my return to America, I eagerly shared this amazing opportunity with my wife, Lana, promising that we could become owners of not just one, but four units through this remarkable lending product—the VA Loan! Our youthful naivety and unyielding motivation overshadowed any fears or challenges that multifamily investing could bring. We were ready to take the plunge.
Armed with Redfin, the then-new home browser, I connected with my first realtor. Though his calm and collected demeanor clashed with my recent Afghanistan self, we embarked on a quest to find the perfect quadplex. Just before the booming real estate market in Keep Austin Weird, Texas, we stumbled upon a property that, truth be told, resembled a SWAT Team Training Shoot House. My calm realtor cautioned against the purchase, predicting challenging tenants. But as a two-time deployment survivor, I assured him that managing people was second nature to me. Little did I know that dealing with Class D tenants would become one of the most stressful challenges in my investing career.
On December 13, 2013, I used the VA Loan to purchase the quadplex for $198,400. Lana and I were brimming with excitement as we decided to introduce ourselves to the tenants with a housewarming gift. Oh boy, what a mistake! They met us with hostility, slamming the door in our faces and expressing themselves with every profanity known to humanity.
Fortunately, a chance encounter at a local real estate meet-up led us to an up-and-coming property manager—a true lifesaver! With their help, we overcame death threats, pest infestations, and tenant refusal to pay rent. We transformed the property from a Class D nightmare to a Class B- multifamily gem, investing $43,789.62 of our hard-earned "tax-free deployment" piggy bank.
Our journey continued as we PCSed to Fort Carson, Colorado becoming out-of-state landlords. But with the support of our property manager every step of the way, we soldiered on. On August 26, 2015—my 29th birthday—we sold the property, profiting a staggering $123,305.15 before taxes.
Looking back, I couldn't have predicted the incredible surge in the value of Republic of Texas' Captial. Today, that same property is worth close to $800,000 on a bad day. But the true value lies in the lessons learned and, most importantly, the courage to take action.
As Veterans, we embody the bravery to answer the call of duty. Yet, in my experience as a real estate professional serving over 1,500 clients—many of whom are veterans—I've noticed a hesitancy to take the "prudent" risk of real estate investing, despite having earned the most competitive lending product in history—the VA Loan.
