2-3 Year Business Plan For Newbie REI
Good morning everyone!
Today, I'm going to lay out the REI plan that I intend to follow over the next 2-3 years. In doing so, I hope that you fine members of BP will troubleshoot any short-comings that I do not see.
This is going to be a fairly broad explanation. So, if you have any questions or would like clarity please ask!
Thank you in advance for your help.
Let's get started!
3-6 Months
Deal #1 - Purchase a 3-4 unit small multifamily property.
- VA loan for financing @ 0% down.
- Closing costs + Repairs = Personal Cash.
- Rent 75% of the property and live in the remaining 25% to comply with VA loan requirements.
(The goal of this initial deal is not to create a significant amount of cash flow initially, the purpose of this deal would be for HH (House Hacking) and living "Rent Free". While pocketing military BAH. Which for all intent and purposes WOULD be additional cash flow...)
VA loan requirements are that I must live in the property for a year before I could move out for whatever reason. Which leads into Deal #2.
1 Year Post Deal #1
- Refinance Prop. #1 to pay off VA portion of the promissory note.
- Give a reason for acquiring a different property. (eg. Closer to work, new family requires additional space, etc.)
Deal #2 - Purchase a second 3-4 unit small multifamily property.
- VA loan financing @ 0% down.
- Closing costs + Repairs = Personal Cash .
- Rent 75% of the property and live in the remaining 25% to comply with VA loan requirements.
(Moving into Deal #2 Prop. will then free up the unit in Prop. #1 which can then be rented out and will then become a CF (Cash Flow) investment property. In its place, I will be HH the 2nd property and will continue to live "Rent Free".)
Complying with the VA loan requirements on Deal #2 will again require that I stay in the property for a year before I am able to move out and turn Prop. #2 into a complete CF investment property.
The timeframe for the above plan is going to take place over the next 2.5 years.
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I know it was kind of a long read, but please. Give me your honest opinion about the above plan and let me know of any gapping holes I am not aware of!
Again, thank you in advance for your help!
-Swiss