Real Estate Agent · San Diego, CA · Member since 2018 · 29 posts · 9 votes
What's up Bigger Pockets and friends! I am a full time sailor in San Diego, (please don't thank me for my service I'm just a regular person like the rest of us), part time realtor, and I'm also an aspiring RE investor. I am in a sort of dilemma, I am pre-approved for a home but I deploy in 5 months, my dilemma is do I buy an investment now, or wait to save the cash that I can during the deployment. I would be saving a good chunk of change during the deployment, but I am getting a case of the FOMO. Help please!
Also to add to the discussion, if there are any other veteran investors out there, would you mind sharing how and where you did it? Thank you all for your inputs!
@Emery Jensen The VA loan as of right now works the same whether the house is cheap or expensive. You'll have to meet a certain criteria the bank has based off of your income, the price, and other factors the lender would require. for multi family, they allow your to take 75% of the projected rents from all non-occupied units, and apply it toward your monthly income to increase your gross income. Ive been doing a lot of research lately on the San Diego economy, and have a very strong basis to believe our market will continue seeing price increases even with the uncertainty of the overall country economy. Also, I can definitely put you in touch with the lender I used. Just shoot me a DM if you'd like his info.
I used the VA loan and the lender also gave me a credit for closing costs. after everything was said and done, I actually made $600 at the closing table.
Hey @Emery Jensen glad to hear you are looking to get into the investing side. I started with house hacking using my VA loan down here in FL and have a mix of short and long term rentals here. I would suggest using your VA loan to house hack if you weren't about to deploy. You have to sign paperwork at closing stating that you plan to occupy the home for at least a year so that might be tricky if you already know that you are deploying.
This might be a good opportunity to take the cash you have built up, or will build up over the deployment, and invest it passively while on deployment. There are things you can do like notes, or turnkey single family, or multifamily syndication like I do. There are good options to invest passively to get your feet wet and also be a little more hands off during a time when its really tough to do anything actively (like on deployment). Where we are in the market cycle it also might not be a bad idea to save up cash during your deployment, spend that time aggressively educating and planning, and invest when you return home and then hit the ground running.
Hey! thats definitely a good area for investments. I may or may not be able to see the Coronado bridge from my roof. (I can). I just used my VA loan to buy a 4-plex right outside downtown SD. the requirements for the VA loan are you must intend to live in the property for 1 or more years. If you "intend" to live in it, but then your receive orders to deploy, that is an exception to it since you are military. I would definitely talk to your lender, but you would intend to live anywhere else, so I would kind of assume it works. Also, you would just need to make sure have a property manager for once you leave to rent it out while you're gone! I am a firm believer that the best time to invest in now. So waiting would just set you back even if it "saved" you a little bit of money in the short term
Hi @Blake Dailey I loved Florida when I was down there for training, beautiful place as well. I also want to do house hacking. I didn't even think how the deployment would get in the way of the whole "living in the property" rule I will have to look into that.
I have been reading tons of books from here pretty aggressively as well as listening to podcasts and I just feel the time I have invested in learning through reading and listening, I should now be apply to trying to learn hands on. I do agree though, maybe passive investing might be a better choice for me because of my upcoming deployment, definitely something for me to think about. Thank you for your reply!
@Emery Jensen it sounds like you have put in the work which is great. I think Sam Diego area is a great place to get in if you find an investment that makes sense because it will only go up over time so in that regard getting something now with VA loan and then using the deployment money when you get back could be a good strategy.
That's awesome man! I have been wanting to find a multifamily home to house hack as well but I am not well educated on how the VA loan works with them, especially the high-priced ones like the one you own. If you don't mind me asking, who was your lender and how did you happen to find that deal? I do agree that taking action might be the best thing I can do, the amount of money I will save could be minuscule to the potential profit of an investment, and I feel like with the direction the economy is currently heading, housing prices are only going to continue increasing.
P.S. did you use a down payment on your MFH? Thanks Brian!
@Emery Jensen The VA loan as of right now works the same whether the house is cheap or expensive. You'll have to meet a certain criteria the bank has based off of your income, the price, and other factors the lender would require. for multi family, they allow your to take 75% of the projected rents from all non-occupied units, and apply it toward your monthly income to increase your gross income. Ive been doing a lot of research lately on the San Diego economy, and have a very strong basis to believe our market will continue seeing price increases even with the uncertainty of the overall country economy. Also, I can definitely put you in touch with the lender I used. Just shoot me a DM if you'd like his info.
I used the VA loan and the lender also gave me a credit for closing costs. after everything was said and done, I actually made $600 at the closing table.
Hacked a 3-unit using my VA, added a 4th unit in the carriage house, refinanced, bought another 4 unit, refinanced both the first and second property, bought a 4-unit then a 3-unit, then started 1031'ing adding 38 units in three years. Anyone else looking forward to retirement?
Yep, it's never a bad time for a good deal. I would tell anyone that since the VA maxes at 4 units look for that. Risk is lower, one units remains vacant for you and the other three pay the bills. IM me for some other thoughts.
Use your VA loan to buy a 2-4 unit property for nothing down. Live in one unit for free. Use your income to save for the next property. wash, rinse, repeat. never pay for a place to live ever again.
we use the above method. We also use short term rentals as our guests, not long term tenants.
@Jared Whitinger I would love to speak with him too, and hear what he has to say. I’m in a similar boat— I’m in the reserves now but came off AD last year. I go to UCSD and study Real Estate Development. I’m looking for a 2-4 unit but San Diego is so insanely expensive.
@Emery Jensen I think you can go either way. I would say if you can find a multifamily to house hack, then buying it now would be smart because you'll be paying down the principle the entire time you're deployed, and can still save additional money towards your reserves. I can vouch that @Brian Koons pulled this off, actually posted a video on YouTube about his story this morning!
We host a monthly meetup downtown, you should come, and I'd be happy to chat and help point you in the right direction if you'd like brother. I know a pretty solid agent or two out here as well!
@Shea Bartolino Happy to help answer any questions you have about military REI as well! As I mentioned above we have a meetup downtown that you should check out. SD is expensive for sure, but it also has one of the highest (if not THE highest) historical appreciation rates in the nation. There are pros and cons to both, but it is possible to invest here if you put your mind to it, and use the right team!
@David Pere I actually saw that video you had posted the day it came out ironically enough, as soon as Brian had told me that you're business helped him with gaining the confidence to purchase that property I subscribed and followed. When are you guys having this meetup? I would love to be participate and meet other like-minded individuals.
@Jared Whitinger I will take a look at Eric, thank you for the advice buddy!