Recently used my VA loan to buy a property where I am stationed, (Active Duty, Hawaii). My contract ends next year and I am looking to invest full-time-this is what I want to do with my life. Any tips/advice from veterans or active duty in my shoes? I'm not entirely sure where to start. I'm reading books that I bought from this site and listening to podcasts. Thanks in advance!
First and foremost. You can't VA a rental. So refi-ing out of the VA needs to be planned for. Especially if you took a minimum down payment to get going. You'll need the equity or appraisal to 80/20 70/30 the new mortgage. Obviously , the more equity you have the more you'll net. Honestly, I've not found that sweet spot yet, on how much cash to keep locked up as equity.
If you're junior enlisted, or a junior NCO, this is absolutely the right path. Just make sure you hire a real PM to manage, you do not want any conflict of interests with the next tenant. No self managing.
Congratulations on making the leap into REI. I would recommend focusing on networking. I am part of a veteran and military mastermind group called the War Room, if you are interested?
@David K. Thank you so much for the advice! I definitely needed to hear this.
@Joshua McMillion I really appreciate it! I’d love to be apart of the group. Thank you for the invite.
I am also a veteran. I bought my first house, a townhouse in Northern Virginia, back in 2011 with a $0/down VA Loan. I just refinanced out of it in October into a conventional loan. We signed papers on a new townhouse, basically the same as our current one, and it will be ready to move into late July. We have started getting this one ready for renting out (packing, painting, getting rid of things, FB marketplace, etc.). Next step is making sure my LLC is where it needs to be, setting up a small business checking account, Wells Fargo has been my go to for their low requirements and fees at startup. Then, I will subscribe to Quickbooks and create an account on Avail.co to list/rent this house. QB is mentioned so many times here, I feel like it is the best accounting app/software to start with. Been checking out various apps for the listing, management, leasing, and rent collection and I am being pulled towards Avail. I was going to go Cozy, also from reading so much about it on these forums, but they partnered with aparments.com and *most people seem to dislike that. I will replace my hot water heater as well before I start the rental process so I don't have to worry about it for the next decade.
This is what I am doing to start my journey. I hope it helps to see where someone is just a little bit further out than you. To me, it seems more realistic than hearing about 100+ doors. One thing is for sure, you have to have at least one to start! =D