Hello all looking for some insight.
I know there will be many different options on this and I welcome them all.
I am active duty military I am just starting out In REI One of my concerns right now is I have enough to invest in one buy and hold (really considering Turnkey companies) but we will have to save up for the next and I don't know how long that will take. Kind of thinking do I wait( reduce risk) or act now ( slightly higher risk).
@Justin Webb - How much longer will you be stationed in Florida? Is that where you are looking at investing. What is your income/budget?
Account Closed at least a couple years in Fl left, initial 25K for my first property. Looking into turnkey so anywhere in the country that makes sense.
First of all, thank you for your service!
How would waiting reduce risk? Because you'll be more knowledgeable at that point? If you have a pretty good grasp of what to look for in turnkey properties / companies (Some BP resources: here and here and this one's good too), then I think taking action and getting the experience now would be better. It's an investment towards your REI "career", which would translate into reduced risk in future investments. You would have to save up for the next one regardless, right?
Account Closed Buy now! Rent out rooms to buddies in military at a fraction of their BAH... It's a win win for everyone!
@Nick Britton is right....buy sooner than later, but know what you are buying and getting into. Buy a multifamily with VA loan & rent out other units or try same strategy with FHA loan....
$25k is a good start but likely not enough to buy a property all cash & do repairs needed. So I am guessing you will need financing? Look for someone who will offer seller financing or get a loan through a local credit union.
I'll chime in, since there was no previous mention of the VA loan entitlement that would allow you to buy up to 4 units, as long as you occupy one of those units, with quite low down payment requirements. Rent out 3, live in 1 and save your cash for your next property or improvements on your first. You've got to owner-occupy for 12 months with a VA loan, unless you get orders that move you sooner. We've purchased a number of properties over about a decade of investing...but only recently used the VA loan.
@Justin Webb have you considered investing into a larger multifamily deal? This will pay you passively while management gets done with no headaches.
I do like @Nick Britton idea, that will maximize return for you.
I would check out a potential invest,met into a larger deal but let me know if I can help anyway possible.
A VA loan is the way to go. you can get a 4plex and the VA will loan you up to 880k while coming out of pocket $0. live in one unit and rent the rest.
let the property appreciate 20% and refinance without having to pay PMI. Then do it again.
Thanks everyone for your thoughts ideas and insights. The VA loan is not an option for me because I am using that on my Primary residence right now. Just to emphasize my situation is I already have a steady job with the military and will receive a pension when I retire. On top of that I have a descent amount in traditional investment platforms for when I turn 65. I am looking to set myself up for greater success by capitalizing on my steady job now to get me into real estate thinking heavily in the turnkey method be cause it allows me to manage the managers within my crazy schedule.
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