First investment property multiplex hunting

[Callie Mejia]

We are just about to move to Seattle area which is very expensive purchase price so we are considering our first investment property being down south. We have been looking at properties in realtor.com but are kind of floundering for our next steps. Should we choose a definitive location and find a real estate agent there to help us? I’m a little lost on the first steps.

[Michael Haas]

@Callie Mejia the 2% rule is rarely achievable here without a massive rehab or re-development project. The 1% rule is more achievable, but even then its tough. We tend to target a GRM (Gross Rent Multiplier) of 10 or less, which puts you just under the 1% rule. That being said, its jaw-dropping how much wealth my wife and I have built through appreciation and loan pay-down... 5 of our 7 properties do cash-flow quite well, but cash flow is only one part of building multi-generational wealth through real estate investing.

The VA loan should work well for you, even with very little cash to invest. I'm partial to house hacking over out-of state investing, especially if you have a VA loan entitlement. We've house-hacked most of our rental properties here and LOVE this strategy. I'm happy to talk with you on the phone a bit to help you narrow down what you're looking for and how to move forward.

PS - thank you for your service!