First Post
Hi everyone! New investor here. I have a few questions as I am in the process of buying a investment. I have narrowed the list down to three in my area and my realtor is now getting comps for me.
Before that some background of how I got here. The beginning of this year I got out of the Navy and stayed in NH to go to school for an engineering degree. Six months ago I got a job at the shipyard as an engineer to support myself while I go to school (it's expensive to live here). A co-worker just bought a house with a VA loan and he was super excited about it. We ended up talking about how up here it is cheaper to own than rent, (He is from here, as I am from CO), I ended up looking at houses in that week. He gave me the number to his realtor and that lead me to my current realtor. As I started searching I found nice places nearby to live but it was expensive. Then I found a duplex with a ten minute walk from work. I did research on it, found out it would only cost me $500 to live there with a tenant in the other side. That got me thinking, what if I got a bigger place, with more units? Like an apartment complex! Well due to VA loan regulations that was shot down. Only can do up to four units. So I started researching those, then on how to be a landlord. I found some info and decided to wait till April to buy my first place, since my rent agreement ends then. I actually came across BiggerPockets during my search for info in the first couple of months, disregarded it then since I wasn't looking to be a REI then. About two months ago I came back to BiggerPockets and made an account, also started school then as well. Well as I read every guide on the site I started dreaming more. I got excited of what my future could be. I wanted to do more research and find more places, but school work needed to be done so I did that instead. Then I read an article about a month ago about starting now. I re-looked at everything and made a plan. I was going to start now instead of waiting. With school ramping up I had to stop doing more research again finish that, Now I am in my last week of school and about to place an offer on a place.
I created a almost play by play of the next ten years. I used my spreadsheets on possible rentals to create the plan. I have then since revised both the plan and spreadsheets multiple times as I learn more. However, the basic plan remains the same. Buy a four plex every year until I can put %20-%30 on a four plex. Then keep using all the money I make to do that until in seven to ten years buy a million dollar apartment complex (found on loop.net). For the first place I will use the VA loan to buy and live in for the year. The second year, will use the second tier VA loan to buy the second. The third will be either a %20-%30 conventional loan or a FHA %3.5 with a one year living requirement. After those three years the next few years will look the same, thinking if I can flip I will do that when I get the funds (or use 203K, but that is contractor work only). Then hopefully I will have enough money in the next decade to put the 200K-350K down payment for the apartment complex. But how to get started?
The first step is the hardest. I need to buy my first four plex and I am starting that process and will look at them with my co-worker (He use to be a electrical guy building houses) and pay him in beer and food. Then I will need to place an offer on one of them. Is there anything I should do or know before offering? I am currently getting the rental stuff in order. Thanks!
V/R
Chris Wedde