Where to start/can I start?

Question

Hey all, new member here. I've been thinking about real estate for awhile now but it has never felt like the right time. Let me know if I'm just making excuses or if I have options given my details.

28 years old.

I served in the military for 6 years so I have access to a VA Loan.

No dependents or really anything holding me down.

I have intentions on going to a coding bootcamp when they open back up in person, but I'm not as enthralled in that world as I was hoping.

Long story short, I'm currently living out of my vehicle voluntarily. I appreciate the flexibility and am a simple guy. It works and I save quite a bit of money. So basically any market is fair game however I'm currently in Phoenix.

I have $105k in retirement accounts.

$5k in cash.

And another $20k in a brokerage account that I can pull out no problem.

The issue is my only source of income is $4200/month from my GI Bill, which is apparently not considered income for lending purposes.

Do I have any good options here? Thanks in advance.

Josh Zigler · Answer

The VA Loan does seem like my best option, given I can sort the income issue out.

I probably have like 2 and half years of GI Bill benefits left but it's a bit convoluted and I don't suspect a lender would take much solace in it.

Nothing is tying me to Phoenix. I need to be in one of these cities(Austin, Boulder, Dallas, Denver, New York, Phoenix, Los Angeles, San Francisco, San Jose, Seattle) for my coding bootcamp which should start in May, COVID willing. And I prefer the west, and specifically the southwest.

I was looking to some gig work like DoorDash or InstaCart but I suspect that won't appease the lenders either.

I appreciate your guys' responses. It's amazing that people take time out of there day to help others for no reason other than that.

Josh Zigler · Answer

@David Pere Funny you mention. I just started that book yesterday. The partnering option seems interesting. I wasn't aware I could use someone else's financials with my benefits.

Andy Hains · Answer

Phoenix is a really cutthroat market right now. If you have the ability to get your hands on off market properties you should consider wholesaling. Most anything rentable that goes on the market in the Phoenix area has multiple offers within a week, so it's a tough market to get started as a property owner right now. So if you stay in Arizona, wholesaling might be your best bet in the near future.

Gina Riccitelli · Answer

No, you have some research to do first.  I just put 'property management career' in the BP search box and a number of posts came up, so review those. Find out what property managers do, what their pain points are. Go on LinkedIn and look up 'leasing management/coordinator/etc."  Go on craigslist, look up rentals, and reach out to the property management companies letting them know what your strengths are, what you could do for them, or call the owner and let them know your background and see if they have any need that you could fulfill or if they have 10 minutes to give you some advice, straight up.  Post on BP, "Veteran ready to Serve in Property Management in Phoenix" or whatever works for you, and state what you think you could do for them, based on your research of the typical job requirements.

Josh Zigler · Answer

@Gina Riccitelli

This was extremely helpful and something that I definitely needed to hear. I’ve been thinking about it all day. I think a property manager roll would make a ton of sense for me right now. Any advice on getting started with that. Just look for job ads on google? Cold call some companies? Something else?

Gina Riccitelli · Answer

Hi Josh, since you seem less enthralled with the coding boot camp, why don't you try something else such as property management or mortgage lending or a construction trade, for example?  Or, is there a small business you could start? (Doesn't help the immediate W2 hurdle though, but 2 years of tax returns might address that issue.) If you do have to complete the training though, then picture how that knowledge might be helpful one day analyzing deals or creating a real estate app, or getting a job at Zillow or BP (for example!)  It seems that you are at a crossroad in life, which is a great opportunity.  You can be successful at whatever path you take, but this is a really important time for you to reflect on what you really want to do with your days, and how your career will fit in with your goals.  Really think about what you are good at and what others would say that you are good at.  Then set some targets.  Know what you're good at, where you're willing to grow in knowledge and as a professional, and where you want to go in real estate, and you'll find many ways to meet your goals.

Josh Zigler · Answer

@Elexis Sims No I thought about building out a van, but it's not necessary for my situation. And I must say after a quick look on zillow for the dallas/fort worth area, it does look much more promising.

Elexis Sims · Answer

Hey welcome fellow rookie. I'm currently in the Fort Worth/Dallas area starting my out too. I used to live in my jeep at one point to cuz it was just a better option at the time. Are you part of the vanlife movement by any chance?

I'm actually looking into doing house hacking myself as a jump start to my real estate journey. I'm hoping to use the passive income eventually to fund my non profit for homeless veterans. If you enjoy the freedom of living on the road/vehicle would you be interested in working together? (Sorry in advance if this is not the best way to ask please correct me if im wrong so I can do better)

David Pere · Answer

@Josh Zigler yeah, if you want to claim the income from the units you would have to hire one, wasteful or not, unless you have theat landlording experience.

Side hustles like that wouldn't help you right now. You need to show employment history for the income on your tax returns, so it wouldnt solve the lender issue.

You could theoretically partner with somebody who has income, and use their financial statement, and your VA benefits.

You could also look into creative financing options like seller-financing, rent-to-own, or subject 2, but these are all fairly uncommon, and take work.

Read Brandon Turners book "The book on investing in real estate with no (and low) money down".

Josh Zigler · Answer

Also in response to @David Pere. I certainly don't have 2 years of property management experience and the idea of hiring a property manager so early on seems a bit wasteful. But I understand you're just giving me options and I appreciate that.

Where to start/can I start?

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