How do I best use my starting assets?

3 Replies

First of all, first time poster. I just want that first post award!

Secondly, thanks for reading this!

Here is what I'm looking at:
- As an Army Vet I have the VA loan to use. I would like to buy a 4 unit multifamily and househack. Once I have the multifamily, I will expand into multiple rentals. I would like to try out vacation rentals as well.
- I have about 40k split between a Roth IRA and a 401k. I need to start a business, so that I can roll that money into my business. That money could be used for rehabbing, contracting, unforeseen costs

I'm obviously still heavy in the dreaming phase. I sense a layoff coming at work and when it happens I want to jump into this headlong.

I've read some stories with people starting out with less than what I have. So I just want to ask, where should I start?


@Derek Sym

Awesome and welcome to BP I'm in a similar situation as you first of all my girlfriend took me to PR last year beautiful place! but I soon noticed the government is doing a horrible job similar to Dominican Republic a lot of corruption!

But your on the right track since your using a VA I'm not familiar but I have seen you can do 0 money down and allow to use your 40k for back up. Or if you're planning on buying on PR possibly look into a flip since things are very cheap, Derek also check out the city as of right now my city is providing me a down payment and closing cost so I'm putting nothing down but the restriction may suck! call the city check around but make SURE TO CHECK ALL OPTIONS!

Make sure you understand the rules surrounding the use of retirement funds to invest in real estate. For example, while IRAs funds may be invested in real estate, the IRA owner cannot do any of the sweat equity work as it would be deemed prohibited.

On the other hand if instead of using an IRA to invest in real estate, you use a rollover as business startup (ROBS 401k/PSP) to finance a real estate operating company, then you can do the work on the properties and you can also take a salary.


Welcome to BP!  THANK YOU for your service in the Army.

Sounds like you have a lot working in your favor. A VA loan will allow you to put little down, but get a lot in return. Leverage your resources. Personally I wouldn't recommend anything less than 20% down if this was your own single family dwelling, but this will be a business for you. If you can find a property that needs some renovations (nothing major for your first one), that you can force some instant appreciation and get rented, this will be a good start.

You might want to find your niche and get good at that before getting into other types of rentals (vacation, etc.).  Though once you do, you could experiment with the vacation in one unit, rent two out full time and use the fourth unit as a vacation rental.  Puerto Rico seems like it would be a good place to get into the vacation rental market.

Best wishes!  Let me know how it goes.

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