Hello everyone, first of all I’d like to say I’m extremely grateful for all the information found throughout this website and all the contribution from the real estate veterans and people looking to break in. Now to my question… I have been thinking about getting into real estate investing for some time and I think the opportunity is here(by next summer anyway). As the title says I am active duty military and my ultimate goal is to invest into rental properties in my home town in Virginia. My family owns a lot of contracting businesses from HVAC and plumbing to general contracting in the area and my support base would be great. Plus it’s a good market and close to a fast growing city without being inside the city limits. My problem is that I obviously move a lot. I am going to be moving to the Tacoma Washington area this coming summer and was considering buying a live in flip to start with. I was wondering in your opinion is that a good route to pursue? My thinking is that if I get the “right” place then I could live there for 6 months fix it up and sell for a profit to jump start the cash flow and then transition to investing in the area I want to retire in or if it goes well do it again. I have about 5 years until retirement and would really like to manage and invest in properties when I’m done. Any advice or opinions would be greatly appreciated. I hope everyone had a Happy Thanksgiving!
Sounds like a good plan just make sure you have your REI business proxy put in place. You also want to make sure you are using your certificate of Eligibility for a VA loan offering you 100% financing. It might be hard but also consider asking for seller contribution which covers the closing costs usually between 2-4% is standard. That helps cover all or some of the closing costs making your out of pocket limited to the appraisal cost and inspections.
If you do find yourself having to move less than 12 months just remember to refinance the VA loan into a conventional loan before moving out. This will free up your VA entitlement for the next purchase using the 100% no money down once again for a new home. You would have a couple of options when you go to refinance from VA to conventional, Rate and term or cash out refinance jut do not move out prior to refinancing so that it is a primary home refinance and not an investment refinance which carry a higher rate.
I'm an active duty guy myself! Shoot me a message, I can give you my take, but most importantly, I can point you in the direction of other military real estate investors.
Congratulations on making the jump into REI. Overall I think your plan is solid, but question the six months live and flip. Are you going to use the VA Loan for this purchase or use other acquisition strategies? If you use the VA Loan, you must live in the property for at least 12 months.
In my opinion, I think purchasing a home in Tacoma is a smart plan, and if I could go back to 2011 when I was stationed out there, I would have house hacked small residential multifamily while using the VA Loan. Reach out anytime, and I would love to connect.
Hey @Seth Mattox - House hacking is a great way to start building your investment portfolio and the VA loan offers a lot of flexibility and advantages if used correctly. I just finished helping some active duty soldiers stationed at JBLM purchase a property to househack. Would be happy to chat with you!