Start now or hold for retiring army officer?

[Jason Wyant]

Hello all! My name is Jason and I am new to investing in RE. I have read a few books and am learning a ton, but am in a conundrum. I am a retiring military officer currently in upstate NY. I will be relocating to Montana very soon though. I am finding a lot of decent opportunities for RE here in NY, but have a few concerns. We currently have an expensive rental in MT where my wife and kids are already living, so we will likely want to purchase within the next 12-18 months. I am concerned that if I start getting some rentals in NY we will tie too much money up and no be able to buy when we want. We will still have a very solid income between retirement and 2 salaries however. 

My other concern is that I will be so far away that it will be difficult to manage the properties. At this point I do have a partner in NY that is willing to manage the property on his own but I do not want to take advantage of him. We have discussed options where he would get an additional portion of the cashflow for his efforts. 

I guess in short I am wondering if it is smarter to wait, continue reading and learning and start my investing adventures after I relocate and am a little more stable with another job, etc? Or should I jump on the possibility of a good deal?

We are looking at one specifically right now: a 4-plex (only 3 livable currently) and all 3 are rented out with long term renters and currently at a very low rental rate (would raise rent 3 months after purchase) and still has a positive cash flow. The renters are very dirty but pay on time and no real troubles. I am very happy to share the evaluation worksheet I built on it if anyone interested. Trying to figure out how to attach it to this...

Thanks ahead of time for any advice! I have heard a ton about the BP family and forums and am looking to learn and grow!

JW

[Eliott Elias]

With all the right people in place you should be able to invest with ease. Put all the pieces of the puzzle together and execute

[Nathan Gesner]

Quote from @Jason Wyant:

My recommendation is to start now. Once you retire, you may get busy with the transition and lose momentum.

Be careful. "The renters are very dirty but pay on time and no real troubles" isn't a stellar start. Maybe it's an opportunity to buy it below market, clean it up, and increase rents with better renters?

There is an investor group in Billings: https://www.facebook.com/groups/BillingsREIA/

I'm just south of there in Cody. I have a good friend that manages 200 rentals in Laurel. Let me know if there's anything I can help with out here.

[Jason Wyant]

Thank you Eliott and Nathan! 

Nathan, I greatly appreciate the info and the offer for help. This is exactly why I am finally getting involved in BP. I will actually be living in Bozeman/Belgrade, but that was not an option. I do have a question (I know it is covered decently in Brandon's book "Rental Prop Inv" but I truly need more guidance) - with Bozeman being such an expensive area, how do I smartly invest in RE and be successful? I know that I can look at other areas and hunt for the truly amazing deals but beyond the golden egg, how can I do it without an enormous start up capital?

Any advice is greatly appreciated! 

BTW, we looked really hard at WY for our new home, but ultimately decided on MT because I am originally from there and my family is there and my wife's family is in Idaho. Better location for us all around, but we really liked everything WY had to offer. 

[Aaron Ziegler]

Quote from @Jason Wyant:

I would go ahead and start taking actionable steps now. If you're retiring to MT soon and already have property and your family here, I would suggest investing here in MT. Long distance investing can be great, but there is something to be said for having a rental that you can self-manage in the beginning to actually learn for yourself. That way when you scale, you'll know how to actually run several rentals and be familiar with the nuances and rhythms of it. This better positions you to be able to manage the future property management you implement. 

Also, and this is just my take on it, if you're investing in residential 1-4 unit properties it's better to own the asset outright. I'm all for partnerships, don't get me wrong. However, being the sole owner will provide a much better benefit long term and cut down on any potential future disagreements on what direction to go with the asset. Scaling, partnerships and management are all very important to exponential growth, but having a good foundation and total control in the beginning makes for a better long-term investor as you'll know first-hand what common issues arise and how to handle them.

Smooth waters make poor sailors.

Reach out anytime, I'm in the Bozeman area and would love to help!

Aaron Ziegler

[Hamp Lee III]

Welcome to BiggerPockets!

I recommend taking care of your family first if you don't think you'll be able to purchase another home in 12-18 months...unless you use your VA loan.

Plenty of great deals will be waiting on you when you're ready, but you only have one family. They've traveled with you throughout your career and made sacrifices. Take care of them with a great home.

BTW, I'm active duty Air Force retiring in a couple of years...I have multiple VA loans as well.

I wish you all the best.