Rental Properties: Where to start?

Question

Hi, I’m in the military, and I’m new to real estate.  Looking to learn more about rental properties, and where and how to get started.  I want to know about the different types of loans to use for rentals/investment properties, or any other types of funding. Any tips, and or recommendations would be awesome.  I would prefer more than one unit but, one would be alright.  Should I buy a move in ready property or fixer upper to flip into a rental, or build to rent?  Also, looking to network and make connections in Jacksonville, FL.  All advise is welcomed, and appreciated.

Joshua McMillion · Answer

@Scottie D. Mullins

I am unfamiliar with the Jacksonville, FL market, but I would be more than happy to step up a call and go over any questions you have. Because you are in the military, you can use the VA loan, which will allow you to purchase a one to four-unit residential property with little money down. If you plan to live in the market you want to invest in; you can also house hack. Meaning you rent out some of the rooms or apartments and essentially live for free while investing the delta. That strategy, in my opinion, is the best way to get into real estate.

As for other strategies, you need to sit down and determine what your why is. Why are you investing in real estate, and where do you want to be in 5 years. Come up with some crystal clear criteria, and once you have your vision take action. There is no right way to get started. That depends on the market, the property, and your goals.

RLTW,

Basit Siddiqi · Answer

@Scottie D. MullinsIf you are in the military, you should look into VA Loans and do a house-hack(if possible).I personally think Jacksonville, FL is a great market to invest in with cash flow / appreciation possibilities.

Scottie D. Mullins · Answer

I really appreciate the input and help Marc.  I am looking into purchasing a duplex or maybe something with 4 units.  I have used the VA loan back in 2015, but it was for a single family home.  Again, thank you.

Marc Rice · Answer

The VA loan you can do 0% down on a 1-4 unit owner occupied property. That's the best loan in real estate as of now. If you can get a 4 unit for 0% down and get a property manager to manage it, that would be a great first deal while you're active in the military still.

Reden Dionisio · Answer

@Scottie D. Mullins I will send you a message with my realtors info. She is also an real estate investor.

With the acronyms, SFH is single family home, STR is short term rental (which you won’t be able to do if using the VA loan).

Joshua McMillion · Answer

@Scottie D. Mullins

No worries, brother, and always glad to help fellow service member achieve their goal and become financially independent. Assisting homeless veterans is fantastic, and I am trying to do the same thing by volunteering and helping service members with PTSD. Keep pushing, and I will see you at the top!

RLTW,

Morgan Putnam · Answer

If you don't live in the area where you want to purchase your first property, I wouldn't recommend acquiring a fixer upper first. It helps to have a large network of contractors (either a trusty GC to handle the whole project or you need each individual sub... painters, tile folks, electrician, plumber, etc.) for homes that need a lot of rehab and that can be hard to find from a distance. I'd recommend a rent ready property initially when investing at a distance. If you're going to continue to invest in the same city, then join a local REIA and try to build connections that way so you can start purchasing homes that need rehabbed (where some of the best returns are!) and find contractor recommendations through other local investors.

Reden Dionisio · Answer

@Scottie D. Mullins hey brother, I know some realtors in the Jacksonville FL if interested. We plan on retiring there after my 20+ years in the Navy.

Are you going to be using your VA loan or is this strictly a rental property?

Any specific type or property (SFH, STR, Small Multi)?

David Pere is awesome. I had him on my podcast a while ago.

Scottie D. Mullins · Answer

@Basit Siddiqi

Thank you so much.

Scottie D. Mullins · Answer

@Reden Dionisio

Thank you so much.  I appreciate that.  I want to start a small business also.  I am just trying to figure out, if I want to start it now or wait.  Maybe buy my first property (see how it goes), then start it.  Not sure.  When you’ve been doing one job for 16 years, it’s almost like start at the bottom again.  Such a humbling feeling.

Rental Properties: Where to start?

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