Where do I start? (Active Duty Military)

Question

Hello all,

Active duty Air Force here. I'm stationed in Eglin, FL. I am looking for advice on how to get started with real estate investing. I recently used my VA loan to purchase a home which is going up in value as planned. I am working on my real estate license in my free time and networking where possible. My long-term goal is to exit the service with enough passive income from rentals to go in full time with a scalable business model which I would then hire out to have more free time to pursue other endeavors. I don't have loads of cash saved up for down payments, repairs, vacancy time, etc. at the moment. My question is, for those of you with experience or have been in a similar position, where do I go form here?

Thank you in advance!

Devin Collins · Answer

@Douglas Spence

Thank you for the encouragement Mr. Spence. Yes my current home is a SFH.  A knowledgeable friend of mine recommended pretty much exactly what you are explaining. Not into the renting out spare rooms in my own home at the moment but refinancing and reusing my VA loan sounds like the action plan for the time being. I've also considered living in my next home and renting out the rooms individually in my current one to capitalize on the income if I can find the right blend of personalities. Its is difficult to find practical MFHs in my qrea but we'll see what sorts of opportunities present themselves in time.

Happy investing!

Doug Spence · Answer

@Devin Collins Is your current home a regular single family home? You could save up cash to refinance it and free up your VA loan, then rent out your SFH and use your VA loan to buy a 2-4 unit property and rent out those other units. You could also stay in your current home and rent out rooms to folks - either on a long term basis or do Airbnb/short term rentals. There's a lot of money to be made in real estate, but you have to be open to creative strategies! The BP forum is a great place o learn more about creative strategies and network with people who have had success with them.

Best of luck and keep us updated with your journey.

Henry Clark · Answer

B.A.H.  Base Allowance for Housing.

A.  Find  out what your BAH is for that location.

B.  Recommend you buy a mobile home, and rent out extra rooms.  Use your BAH money for the payments.  When you leave, sell or keep renting.

C.  Do a BRRR or Flip on the mobile home.

D.  Keep doing this, and as you get cash, start either moving up in value, or start to do more Mobile homes at each place you move to.

Reach out to the military folks here and get them to help you get started.  Checklist, appraisals, what to watch out for, etc.

Devin Collins · Answer

@Henry Clark

Sir,

Thank you for the feed back! I appreciate the interesting perspective. The low cost and low barrier to entry along with the up to date options of modern mobile homes makes is very appealing. Seeing as how I also live a military town with high tourist traffic near many beaches and events this gives me leverage as both a traditional rental and a vacation rental or air bnb. Great Advice!