Should I house hack or live in the barracks? (Military)

Question

So I'm heading to fort bragg where I will be living in the barracks. My question is should I live in the barracks and save up to 20% until I can purchase a property or should I house hack and own a property and maybe pay some expenses every month?

Like is it either I own a home and live there paying half the expense or live for free in the barracks while I save up my money.

I already have enough money to house hack.

Joshua McMillion · Answer

@Fahadbin Alam

Before you purchase a home or even start that process, you need to ensure your command will allow you to live off base depending on your rank. If you get the green light, I recommend finding residential multifamily and house hacking with your VA loan. If you go this route, please make sure you screen your tenant and don't just let your friends stay in the home. I have had soldiers do this, and it always turns out horrible.

Stay in touch, and if you need anything, don't hesitate to reach out.

Sincerely,

Josh

Don-Carlos Moniz · Answer

@Fahadbin Alam, like @Joshua McMillion said - check with your command before planning any off-post purchase.  I have seen a number of soldiers who tried to maintain a home off-post while still officially residing in the barracks.  It is very costly, and you will not qualify for all the entitlements.  If you can move off-post, then a house hack is the way to go.  Find a property that makes sense numbers-wise.  Calculating your costs is key since you will most likely become a long-distance landlord.  Don't assume that you will be able to self-manage when your next duty assignment is in Alaska.  I went from Bragg to Alaska - a property manager becomes a necessity.  If you have any questions, don't hesitate to reach out.

Brett Goldsmith · Answer

@Fahadbin Alam Just find a good deal. I like MF better for cash flow, but if you find a great SFR in a good area, that can work too. Also the down payment is all relative. Sometimes you need a larger down payment to get financing or put the property in a safer position LTV and to cash flow more. IF you can cash flow well and put less down than that may be a good move. Buy a property you can afford if things go wrong and also keep money for reserves. Properties are more expensive in reality than they often seem on paper.

Keenan Fitzpatrick · Answer

Long Term Rental

Alex Verdugo · Answer

Live on base, buy multi family,  live free, have people give you money, buy more multi family, quit govt job, buy more property. Seems simple.

Fahadbin Alam · Answer

@Brett Goldsmith what would you recommend? Should I go with a 20% down? 15? Would I do single family or go for multi?

Fahadbin Alam · Answer

@Keenan Fitzpatrick what is a LTR?

Brett Goldsmith · Answer

You could buy an investment property while living in the barracks... That seems to be the most frugal option while also investing.

Dan DiFilippo · Answer

Good points being made here.  One thing I would add, and it may or may not be something you've considered, is the VA loan.  Perhaps you've already used it once back in your home state or NJ (or maybe your home state is NJ) and that's why you're starting this query from the point of a downpayment.  That's certainly legitimate.  Though you may not know that you can usually use your VA loan more than once.Whatever it is, you should talk to an agent.  @Don-Carlos Moniz is great and I'm happy to answer any questions as well.

Keenan Fitzpatrick · Answer

I agree with @Don-Carlos Moniz. If you were to house hack ( I see people using that term 2 ways) you're either going to find a house with lots of rooms and rent them out or get a multi family. A traditional house hack will be hard to manage from a distance. If you switch that over to a LTR when you leave it will probably not be worth the cashflow.  A multi family house hack could go either way. A 4plex is doable but you'll need some systems and a team in place. A nice duplex will be less work, and probably less cashflow but is more doable. I've seen people do both. It just depends on what fits you best. Shoot me a dm if you want to chat on the phone and I can help kick things around for you. Thank you for your service!

Should I house hack or live in the barracks? (Military)

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