New to Real Estate · Austin, TX · Member since 2013 · 63 posts · 3 votes
hey fellow BPers.
I am wondering if you can suggest any types of media, books, past BP forums and articles that would help out a beginner in their first buy-hold investment.
I am a veteran, so I can get the VA home loan. I also plan to go to school full time which entitles me to housing allowance. my plan is to purchase my first buy-hold, probably a 3/2 or similar, and rent out the other two rooms. this gaining extra 'cashflow?' (not sure of the proper term) as well as experience as a landlord, I feel would be a great start. I am basically guaranteed my rent while school is in session. and once I build up a cushion for summer break or vacancy, I can then use the extra cashflow to pursue more investments, possibly a duplex or another single family home.
Real Estate Agent · Portland, OR · Member since 2013 · 412 posts · 219 votes
13y
Nicolaas,
Thanks for your service! I know that it isn't always easy but it will pay off in more than just pride. You probably lived and learned more about leadership in your time in the Army than most people with a BA in business.
I've learned a lot from reading books but not one particular book if that makes sense. More like a little from a bunch of them. Honestly, your best bet is to set up a keyword alert on Bigger Pockets for Austin and then read through as much of the landlord sub-forum as you can. This website is the best resource I've found out there putting expensive books and courses to shame! There are tons of posts answering questions you didn't even know you had :)
After that, I'd say just do it. Learn from trial and error. Take advantage of your benefits, and let someone else pay your mortgage for you while in school. Sounds great to me!
New to Real Estate · Austin, TX · Member since 2013 · 63 posts · 3 votes
13y
thanks! and thank you for your service as well!
yes indeed, I was actually taking a class online and it was on human relations in the workplace, and I would laugh when I came to work, because I would watch things happen right before my eyes that I was reading about the night before. The military teaches a lot whether you realize it or not.
Thanks for the advice
cheers.
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
13y
Nicolaas W.
Rather than purchase a SFR and have boarders, have you considered looking for a duplex, triplex, or quadraplex and live in one unit while renting out the others?
Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
13y
Matt has solid advice.
That is exactly how I got started. I was renting the house, but rented two rooms out so I got a huge discount and all the benefits of the property.
It gave me so much experience in dealing with people, having the awkward conversations etc...
The cool part is you can break every screening law there is because they are living with you so you can be VERY selective as you should.
The bummer is they are living with you so you have to be very good at screening.
This is how I would do it. Post a very SPECIFIC ad on craigslist, listing what I did not want and what I did. This meant few responses but high quality ones that did. Then we would exchange facebook, do a quick screening on there and then setup a meeting at the house. Have them hangout a half hour or so and go from there.
I had 9 people in five years go through the two bedrooms and they are all like family to me now. It was so much fun, I made so many friends through them and it was a blast. I also think it made me a much better at screening and dealing with strange situations.
So I highly endorse it! I will be doing this when I move into my new place in a year. If you are a social person having people around is nice! I went to Australia for a month and my roomies watched my dog for me. It has some nice perks!
New to Real Estate · Austin, TX · Member since 2013 · 63 posts · 3 votes
13y
"Rather than purchase a SFR and have boarders, have you considered looking for a duplex, triplex, or quadraplex and live in one unit while renting out the others? "
Roy N. thanks for the question.
I honestly just like the idea of doing a SFR, and I am not sure about the limitations with the VA Loan. I also think that like Tim G. said, it would give me great experience with screening tenants, and being forced to deal face to face. Also I honestly like the idea of having a house with a yard and more space. But I will definitely keep the 'plex's in mind, because that is a great suggestion.
I know that if I do go the SFR route, I think a 'plex of some kind would be a great next move, and if I decided I wanted more cashflow, I could move into one of the places there, and completely rent out the SFR, But I did not ever fully consider a 'plex as a living space. Thanks for instilling the idea!
I should run the numbers.
New to Real Estate · Austin, TX · Member since 2013 · 63 posts · 3 votes
13y
also, Roy N. what did you mean by borders?
you also reminded me of a friend who helped his parents with a "mini" apartment complex they had. they had a main house in front with maybe 3 'apartments' behind the house. would this be a quadplex?
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
13y
Nicolaas W.
A {du, tri, quadra}plex could have many/most/all of the benefits of a SFR. Around here, many old Second Empire, Georgian, and Victoria era homes which were originally constructed to hold an entire extended family - plus, at times, nannys and maids - have been carved into multi-units Triplexes are the most common ... one apartment per floor of the old house. The building still sits on a large lot, with backyard, etc. and, from the outside looks like a large SFR.
The advantage of a *plex over having roomers/boarders in a SFR, from my perspective, is you still have others helping pay the mortgage, but you do not have to share a kitchen/ bathroom and can maintain your {and their} privacy.
The building you describe of your friends parents: main house with 3-4 apartments in the back part of the house or in a separate building (perhaps a converted carriage house), is very much like what I describe above. This would be a tri/quadra-plex.
Also, by boarder I was referring to someone to whom you rent a room as opposed to a tenant who is someone to which you lease a property (or portion of the property). In most jurisdictions, there is a legal distinction between a boarder/roomer and a tenant and quite often different rights and obligation on part of both the boarder/tenant and landlord.
Rental Property Investor · St Petersburg, FL · Member since 2011 · 79 posts · 24 votes
13y
Nicolaas W. - VA will only count the units under the same roof as a 'plex' - and only do the financing on it if there are no other buildings with living units on the same lot