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.
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.
@Joshua McMillion , thank you for the advise. I might be in touch. I just looked at David Pere’s website, and watch some of his videos on YouTube. Cool dude, seems laid back and easy going. I am messaging him through his website, and looking at more of the stuff he has on his page, and watching more videos. My goals are clear for me, which are to invest in real estate for passive income, so that my family and I will have a better future financially, while also building my legacy for my kid and possible grandkids. Some where along this journey, I want to do something to help homeless veterans as well. I don’t have it all figured out yet, but that’s alright with me. Again, thank you so much for the helpful advise and, now I know of at least one person I could reach out to.
@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.
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.
Thank you so much for this valuable information. I will be retiring there in Jacksonville, FL and, living there. Maybe permanently. So, that’s where I will start the process. The rent ready idea is nice, thank you for that recommendation.
Thank you for the reply. I don't know those different abbreviations you mentioned. Yes, I do plan on using the VA loan, and after watching some of David's YouTube videos. He talked about the VA rehab loan, which caught my interest. Also, please share any realtors, contractors, lenders, etc. If you don't mind of course? Thank you. Any other info is appreciated as well. Thank you.
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!
@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).
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.
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.
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.
@Scottie D. Mullins
If 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.
Thank you so much.