Active Duty Military - Beginning in Real Estate Investing

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Active Duty Military - Beginning in Real Estate Investing

Oscar Sosa
Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes

Hello everyone!

As an active duty service member, I am looking to get in to real estate investing. I would love to gather any advice or words of wisdom from anyone who has started investing in real estate while still on active duty.

Thank you all so much!

Very Respectfully,

- Oscar

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Dimitri Paspalaris
Investor · Rota, Spain · Member since 2019 · 156 posts · 68 votes
6y

I am currently on Active duty with the Navy and closing on my first property next month. I would recommend starting to build some knowledge by reading and watching videos here on biggerpockets, YouTube and other media avenues. I would read both long distance real estate investing by David Greene and Set for life by Scott Trench. Also for VA loans read David Pere complete guide to the VA loan very good. Lots of great people here to answer all of the questions you have.

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  • Rachelle RodaviaPro Member
    BiggerPockets Support · Manila, Philippines · Member since 2015 · 1k+ posts · 149 votes
    6y

    @Oscar Sosa

    Welcome to the BiggerPockets community!
    Glad to have you with us.

    BiggerPockets
    0Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @Rachelle R.

    Thank you very much! I look forward to meeting with like minded individuals and absorbing all of the information that available to newbies like myself to begin my path down the roads of real estate investing!

    Very Respectfully,

    Oscar

    1Reply
  • Dimitri Paspalaris
    Investor · Rota, Spain · Member since 2019 · 156 posts · 68 votes
    6y

    I am currently on Active duty with the Navy and closing on my first property next month. I would recommend starting to build some knowledge by reading and watching videos here on biggerpockets, YouTube and other media avenues. I would read both long distance real estate investing by David Greene and Set for life by Scott Trench. Also for VA loans read David Pere complete guide to the VA loan very good. Lots of great people here to answer all of the questions you have.

    4Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @Dimitri Paspalaris

    Thank you so much! I have been nose deep in several books so far, 1 being BiggerPockets own Brandon Turners "The Book On Rental Property Investing", a lot of great advice and plans on beginning the journey in to real estate. I have owned my house now for 4 years and am looking in to renting it out. I know with the VA loan (or so I have read from many articles) that in order to utilize a 2nd VA home loan, I would have to reside in the residence for 1 year, so I am looking to find more information as to if it would be beneficial to refinance my current VA loan to a conventional loan so that I am able to utilize a 2nd VA loan for my next home purchase.

    I am absolutely going to check out the books you recommended!

    Very Respectfully,

    Oscar

    0Reply
  • Donald E Appleberry
    Real Estate Agent · San Diego, CA · Member since 2018 · 144 posts · 145 votes
    6y

    Hey man,

    Full transparency I'm an Agent here in San Diego. I'm a prior Recon Marine and literally all I do is help military guy/girls get started or keep building their investment portfolio using the VA loan. There's a lot of benefits to using the VA loan to start investing, ESPECIALLY in this market where the barrier of entry is usually insanely difficult to reach. To expand a little on what Dimitri said, you should definitely check out "From Military to Millionaire" on Facebook. It's the group that @David Pere started for these exact situations! I know David well and this community is a great one to reference for answers. Keep Diving in and learning, but realize its a deep pool of info so don't be intimidated if you feel like you don't know everything. In a constantly evolving market and industry you'd drive yourself crazy! Haha. Feel free to reach out anytime with questions. If you want, I can PM you my info and we can chat over the phone. Like I said, Yes I'm an agent, but I'm a teacher at heart as cliche' as that may sound. Haha. Have a good one and best of luck! 

    0Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @Donald E Appleberry

    Thank you very much!

    I actually came across David Pere’s website today and it has become a game changer! So much great information with regards to real estate investing while on active duty. I am really eager to dive in to real estate investing, however, I still want to do my research and become as knowledgeable as possible with regards to analyzing properties, establishing a system that meets our goals and ultimately making a decision on a property that makes “numbers sense”. I would absolutely like to speak with you in the near future to get your advice for me as a beginner! Talking with a fellow Marine always makes my day that much better.

    Semper Fidelis!

    Oscar

    0Reply
  • David Pere
    Rental Property Investor · Springfield, MO · Member since 2016 · 1k+ posts · 890 votes
    6y
    @Dimitri, @Donald Thank you both very much for the kind words! @Oscar, I know we connected via email this morning, and I'll follow up with you as soon as I get off work!
    1Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @David Pere

    I appreciate you taking the time to respond back via email today! I look forward to hear back from you at your earliest convenience.

    Semper Fi!

    Oscar

    1Reply
  • Charlie CameronBusiness Member
    Investor · Niceville, FL · Member since 2017 · 451 posts · 366 votes
    6y

    Oscar - Welcome!  I'm an active duty investor as well. My goal is to replace the active duty portion of my income by the time I hit 20 years (or sooner!).  Definitely jump on @David Pere's group, he's got great content for us. I love connecting with other military investors to see how I can help if you're interested.  Go out there and crush it!

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    2Reply
  • David Pere
    Rental Property Investor · Springfield, MO · Member since 2016 · 1k+ posts · 890 votes
    6y

    Thanks for the kind words @Charlie Cameron

    1Reply
  • Steven Odebralski
    Member since 2019 · 3 posts · 1 vote
    6y

    Hi @Oscar Sosa, I have read a lot of material that has been referenced and have been following and talking to @David Pere for a few months (great content!).  I  have a few rental properties and I am currently looking at some smaller commercial properties.  I live in Sneads Ferry and if your interested can meet you in person (while social distancing) to see if I can help at all.  Let me know if you're interested.  Take care and good luck on your journey.

    Steve

    0Reply
  • Steven Odebralski
    Member since 2019 · 3 posts · 1 vote
    6y

    Hi @Oscar Sosa, I have read a lot of material that has been referenced and have been following and talking to @David Pere for a few months (great content!).  I  have a few rental properties and I am currently looking at some smaller commercial properties.  I live in Sneads Ferry and if your interested can meet you in person (while social distancing) to see if I can help at all.  Let me know if you're interested.  Take care and good luck on your journey.

    Steve

    0Reply
  • Adam Frank
    Rental Property Investor · Wilmington, NC · Member since 2016 · 19 posts · 9 votes
    6y

    Use your VA loan to start. It's amazing and that's how I started.
    I would also say house hack but Sneads Ferry and surrounding towns don’t really have much small multi family unless you are willing to invest/live in J-Ville. And the small multi there are not located in the best area. 
    Wait one year and then use your VA loan again for a second property and repeat. Or just start saving money for the BRRR strategy.
    Deals are not easy to come by there, the market has changed over the last few years. But there will always be deals so just keep looking


    0Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @Adam Frank

    I appreciate it!

    Yea there isn’t too much in the market down here in Sneads Ferry with regards to multi-family. I absolutely love the idea of house hacking, but think I may have missed the boat with those opportunities as I am now married with 2 small children haha! Where there’s a will there will certainly be a way though!

    I have also been searching/analyzing deals in the Jacksonville area with the idea of purchasing a property with a 2nd VA loan and renting out my current home down here in Sneads Ferry.

    How is the real estate market out there in the Yucca/29 area right now?

    Very Respectfully,

    Oscar

    0Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @Steven Odebralski

    Thanks Steven!

    I definitely would be up for connecting sometime in the near future here in Sneads Ferry!

    0Reply
  • Adam Frank
    Rental Property Investor · Wilmington, NC · Member since 2016 · 19 posts · 9 votes
    6y

    I think you’ll find way more deals in Jacksonville. I’m not too familiar with all the neighborhoods there but I do know carolina forest/plantation areas are desirable.

    As for the market over here, I’m not too sure because I invest in NC. Anywhere from Sneads Ferry to Wilmington is my primary focus. 

    I did purchase a live in fix and flip here in Yucca. My home is pending/in escrow. I received multiple offers so I guess the market here is not bad. I’m guessing it’s because Joshua Tree national park has become increasingly popular. This is attracting investors/second home buyers from other areas such as LA and San Diego. 

    0Reply
  • Joe Roberts
    Rental Property Investor · USA · Member since 2017 · 46 posts · 29 votes
    6y

    @Oscar Sosa

    I'm a fellow active duty local investor here in NC, and if your in Sneads Ferry I am just up the road from you. DM me if you wanna chat about local investing here!

    0Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @Adam Frank

    There definitely are some deals to pursue in the Jacksonville area right now. I have noticed an influx of auction/foreclosures in some areas along with hurricane/flood damaged properties. I imagine if the deal is right, pursing a flood damaged property could be a potential niche, as long as the numbers make sense.

    How do you feel about the strategy of BRRRR on flood damaged properties? Would a potential Fix/Flip make more sense?

    That’s interesting that the Joshua Tree area is slowly attracting out of town buyers. Do you foresee building increasing in some areas, or is it limited with land/national forest restrictions?

    0Reply
  • Adam Frank
    Rental Property Investor · Wilmington, NC · Member since 2016 · 19 posts · 9 votes
    6y

    I would lean towards flipping flood damaged properties. I don’t want to worry about my units flooding so I stay away from flood zones. Flood  insurance is expensive as well.
    If the numbers are great, you have a high risk tolerance and you include flood insurance in your numbers then I’d consider looking into the property further. 

    Due to COVID19, I plan on waiting at least 6 months to see if any deals pop up in Wilmington that are not in flood zones. 

    I know of one neighborhood in Yucca Valley called copper hills is expanding/New homes are being built. Nothing to the extent of eastern/coastal NC though. Im assuming your correct and that much of the land here is protected but I do not know for sure. 

    0Reply
  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    @Oscar Sosa you can still make it happen with your little ones and wife in the right 2-4 unit property. Whether the military folks I work with or first time buyers, non military, I always encourage house hacking using the VA loan and fha loan, respectively.

    I have been investing myself for a while and I still house hack with wife and little one, again just have to be in the right property and right area.

    Being able to put little to no money down on a property is great in general but even more so in a high cost market.

    Best of luck to you and feel free to reach out anytime!

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    1Reply
  • Sean McDonnell
    Real Estate Agent · Surf City, NC · Member since 2017 · 648 posts · 597 votes
    6y

    @Oscar Sosa 

    Welcome to BP brother! We need to meet up soon and grab a beer. I am in Sneads Ferry also. Me and some other investor friends are going to start a real estate investing meet up in Surf City once things open back up, hopefully in June. You definitely should join us!

    2Reply
  • Mark H. Porter
    Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
    6y

    Oscar - I did 30 years between active duty and air guard. In 1997 I used my VA for the first time on a 3-unit in Essex junction, VT across the street from IBM. I refinanced it 1x while there on a cash out to buy another four unit. I then refinanced the two of them to buy two more 4-unit using 10% from me and 10% from the sellers and bought the two knew ones 3 weeks apart.

    Fast forward to now with 50+ doors and netting what is probably 4x your military pay.  My message is this - this is not easy at all.  There have been dozens of times I wanted to bail. But if you work hard to get smart at this and work hard at night and weekends you can move far beyond what you can dream.  All you have to do is say “yes”.

    2Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @Adam Frank

    I definitely agree with you that flipping flood damaged properties would yield a higher return. It has been almost 2 years since Florence so I anticipate people will begin looking to purchase with a little less hesitancy. With the new flood zones that FEMA just released, it has shifted quite a bit and a few more properties now fall in to those zones, where as they were not in it a few years ago. Definitely a thought to take take in to consideration regarding requirements for flood insurance.

    I’m definitely intrigued with the Wilmington/Hampstead area in the near future. I am interested to see, with the development of the bypass set to begin this fall, what growth that area will see. Definitely keeping my eye on it.

    How has it been for you managing your properties from across the country? Any words of encouragement/wisdom from your experiences so far?

    0Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @Twana Rasoul

    Thank you Twana!

    It is reassuring to hear that is 100% possible to house hack with a small family, and it is definitely a strategy I would absolutely pursue, like you said though, if the deal/numbers make sense in a relatively safe neighborhood. I look at it from the family standpoint too, as long as my wife is comfortable with the property, I would feel more inclined to pursue that strategy....!

    The idea of a low % down is absolutely advantageous and it would free up capital for other deals as well!

    Thanks again Twana!

    Very Respectfully,

    Oscar

    1Reply
  • Oscar Sosa
    OP
    Rental Property Investor · Eastern North Carolina · Member since 2020 · 29 posts · 14 votes
    6y

    @Sean McDonnell

    Hey Sean!

    Let's absolutely connect! I know times are a little strange right now, but once things clear up, I am absolutely on board with attending an REI meet up!

    I was looking in to some groups down in the Wilmington area that I have registered for, but with the COVID situation, meetings have been put on hold or rescheduled for later in the year.

    I will DM you now and we will stay in contact!

    Very Respectfully,

    Oscar

    0Reply
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