I've decided to start investing in real estate to diversify my investments, with a long-term goal of creating generational wealth for my family. Hoping to do some networking and learn more about the pros/cons of investing in the VA Beach area.
Background: I have purchased and sold a primary residence before, but am trying to learn the ins and outs of purchasing for investment purposes. My plan is to purchase single family homes/townhomes for long-term rental, and benefit from appreciation over decades. I have a pretty flexible schedule, but wouldn't be able to become a full-time property manager, so I may be looking at hiring one. I'm also trying to keep my eyes peeled for properties that require some rehab (kitchen/bath/flooring/etc).. not major projects.
Details: -I have set aside $350k of expendable cash, and I'd like to leverage this. I can add to this in the future, but I am setting this as a limit as I get my feet under me. -I am eligible for a VA loan -Generally looking for homes <$400k ARV -Single, no dependents, currently own no property.
1-year goal: -Purchase 2 properties intended for LTR. House Hacking via VA loan and 2nd home are on the table, but I am not limiting to that.
3-year goal: -Look towards multi-family property or opportunities to build ADUs. At this stage, I hope to have enough experience, and the network to be able to accurately estimate total expenses, allowing me to move towards bigger projects with bigger potential gains.
Any advice on ways I can move forward with my goals? Any tips for someone starting out that you wish you knew? Aware of any networking events/groups I should try to participate in?
Do you want to generate passive income or are you okay with negative cash flow? Generally speaking the higher cashflowing properties appreciate less.
With $350k you can purchase - 2 properties in cash or 4-5 with financing. I'd recommend checking out some turnkey property managers to get a sense of the numbers.
You can also run the numbers with a mobile app called Clarem FI (www.getclarem.com) that can help you build the most optimal plan to deploy your cash.
Do you want to generate passive income or are you okay with negative cash flow? Generally speaking the higher cashflowing properties appreciate less.
With $350k you can purchase - 2 properties in cash or 4-5 with financing. I'd recommend checking out some turnkey property managers to get a sense of the numbers.
You can also run the numbers with a mobile app called Clarem FI (www.getclarem.com) that can help you build the most optimal plan to deploy your cash.
I've decided to start investing in real estate to diversify my investments, with a long-term goal of creating generational wealth for my family. Hoping to do some networking and learn more about the pros/cons of investing in the VA Beach area.
Background: I have purchased and sold a primary residence before, but am trying to learn the ins and outs of purchasing for investment purposes. My plan is to purchase single family homes/townhomes for long-term rental, and benefit from appreciation over decades. I have a pretty flexible schedule, but wouldn't be able to become a full-time property manager, so I may be looking at hiring one. I'm also trying to keep my eyes peeled for properties that require some rehab (kitchen/bath/flooring/etc).. not major projects.
Details: -I have set aside $350k of expendable cash, and I'd like to leverage this. I can add to this in the future, but I am setting this as a limit as I get my feet under me. -I am eligible for a VA loan -Generally looking for homes <$400k ARV -Single, no dependents, currently own no property.
1-year goal: -Purchase 2 properties intended for LTR. House Hacking via VA loan and 2nd home are on the table, but I am not limiting to that.
3-year goal: -Look towards multi-family property or opportunities to build ADUs. At this stage, I hope to have enough experience, and the network to be able to accurately estimate total expenses, allowing me to move towards bigger projects with bigger potential gains.
Any advice on ways I can move forward with my goals? Any tips for someone starting out that you wish you knew? Aware of any networking events/groups I should try to participate in?
Thanks in advance for any advice!
Jay
Jay, thank you for this post! I'm SO excited for you! You have such a strong WHY for investing in real estate, "creating generational wealth for my family" -- love it! That's my why as well, "to break generational poverty in my family by investing in real estate!"
"1-year goal: -Purchase 2 properties intended for LTR. House Hacking via VA loan and 2nd home are on the table, but I am not limiting to that. I love this first goal!"I've never did a house-hack, but my buddies @Danielle Daly & @Noah Bacon are having success with it! The use of a VA loan is great (you can find real estate investor-friendly lenders on BiggerPockets)!
If you ever decide to purchase a non-owner occupied single family property, some lenders allow you to put down as little as 15% for the down payment. I have did that twice.
"3-year goal: -Look towards multi-family property or opportunities to build ADUs. At this stage, I hope to have enough experience, and the network to be able to accurately estimate total expenses, allowing me to move towards bigger projects with bigger potential gains." Nice!
I have a pretty flexible schedule, but wouldn't be able to become a full-time property manager, so I may be looking at hiring one. If you will be local to your property, I would say first self-manage. I work a full-time job, a side gig as a food delivery driver, moderate for BiggerPockets, gym, family, friends, & etc, but I still self-manage my properties usually from my cell phone, lol! :) Great self-managing comes for well-organized systems, polices, and procedures.
Any advice on ways I can move forward with my goals? Any tips for someone starting out that you wish you knew? Aware of any networking events/groups I should try to participate in? It's great that you are in the BiggerPockets forums, such a good start! I would say attend FREE local real estate meetups in your area. (BiggerPockets has the Community Events & Local Meet Ups section on here!) If not one in your area, start your own. Yes, even if you have ZERO properties. There may be someone in your area wanting to chat about real estate as well! Listen to the BiggerPockets Real Estate Rookie podcast. Read books and attend conferences.
For me, here is how I first started BP (BiggerPockets):
- BP forums
- BP podcast (Rookie)
- Books (Rich Dad, Poor Dad, Profit First, and some BP ones)
- Local Meetup in my area
- Conferences (BPCON2022, BPCON2023, and soon BPCON2024)
I hope this helps! You won't have everything figured out. Just take it one step at a time but with ACTION!
One thing to remember when you are getting into RE investing is to have your team of people or as Brandon Turner from the Bigger Pockets Podcast calls it your CORE 4
1. Your contractor
2. Your deal finder (agent/wholesaler)
3. Your property manager
4. Your Lender
My suggestion to find #2 & #4 would be to go to the top of this page and click on FIND AN AGENT & FIND A LENDER. There you will be asked your criteria and then after answering a few questions you will be matched with 3-5 agents or loan officers in your area. My suggestion would be to select someone with the most forum posts or most reviews. That way you know they are active in the BP community!
I've decided to start investing in real estate to diversify my investments, with a long-term goal of creating generational wealth for my family. Hoping to do some networking and learn more about the pros/cons of investing in the VA Beach area.
Background: I have purchased and sold a primary residence before, but am trying to learn the ins and outs of purchasing for investment purposes. My plan is to purchase single family homes/townhomes for long-term rental, and benefit from appreciation over decades. I have a pretty flexible schedule, but wouldn't be able to become a full-time property manager, so I may be looking at hiring one. I'm also trying to keep my eyes peeled for properties that require some rehab (kitchen/bath/flooring/etc).. not major projects.
Details: -I have set aside $350k of expendable cash, and I'd like to leverage this. I can add to this in the future, but I am setting this as a limit as I get my feet under me. -I am eligible for a VA loan -Generally looking for homes <$400k ARV -Single, no dependents, currently own no property.
1-year goal: -Purchase 2 properties intended for LTR. House Hacking via VA loan and 2nd home are on the table, but I am not limiting to that.
3-year goal: -Look towards multi-family property or opportunities to build ADUs. At this stage, I hope to have enough experience, and the network to be able to accurately estimate total expenses, allowing me to move towards bigger projects with bigger potential gains.
Any advice on ways I can move forward with my goals? Any tips for someone starting out that you wish you knew? Aware of any networking events/groups I should try to participate in?
Thanks in advance for any advice!
Jay
Have you considered looking into Short Term or Mid Term Rentals? Something to look into if you are looking for passive income. There are many ways you can build up from there. It also really depends on how much you trying to invest.
Investor · Member since 2021 · 129 posts · 209 votes
2y
Here is my advice to move forward with your goals.
Go buy your first property! You have the capital, your goals are pretty clear. The only thing missing is action.
You'll learn 20x more by taking action than by reading a book or listening to a podcast which are always general knowledge that gets repeated over and over.
Once you dive in you will start to come across specific issues and problems you didn't even know existed! When that happens you have a great forum at BP to help you with those specific questions.
Outside of whatever properties you decide to purchase, give your $350k work to do. I recommend putting that in to some type of investment account producing dividends and other long term growth vehicles. Then leverage that investment through margin lending to purchase your properties. The margin payback will happen outside of your property purchases, your interest on the loan is deductible, and you aren't spending your cash. Remember, it doesn't take money to make money, It takes other people's money to make money.
Personally I did this around 2 years ago and have purchased 3 mobile home parks and multiple SFH with local bank financing. We are now producing over $200k year gross income with $83k debt service. Investment account has a 34% internal rate of return at the moment. We have gone from essentially no retirement, to excess funds while also producing generational wealth for our girls.
Your best deals will be found off-market, so partner up with a few realtors in your area. Get a great accountant and locate a few attorneys- trust planning and real estate. I also have a financial advisor. If you are lucky enough to get the right people, they are going to take great care of you as you progress.
