Hi! Thanks for taking the time to read my post. I'm an active duty sergeant in the USAF. I'm currently stationed in Tucson AZ, but I'm originally from Albuquerque NM. I should be retiring from the AF in Jan 2017. So- I've been saving for a while now and have built up a decent fund that I can use for investing, starting a business, something, when I get out of the AF and settle down somewhere. I'm looking at either returning home to Abq NM, or moving to Dallas TX. I'm looking for a mentor, someone who is already financially independent, someone who's self made and knows how to get from where I am to where he/she is financially. Like I said, I have some money set aside for this next chapter of my life. I'm just not sure where to start? What books to read? I'm not sure if I need to use my money or if there are ways to get into cash flow properties without using my own money? I'm not sure if I should focus on a duplex, triplex, 4plex, mobile home park, etc....? Any knowledgeable mentors out there looking to teach, I'm ready to learn!
Use my VA to get into a 4plex with 0 down. Rent 3 units and live in one IF the 3 cover the mortgage and other expenses. Use my money to invest in another 4 to 6 unit rental and hopefully generate some cash flow after all other expenses are paid. My goal is to generate monthly income through investment properties and add that to my retirement from the AF to pay for my monthly expenses and become financially independent. If I'm dreaming, let me know... lol
Again, thanks for reading and I'm looking forward to your comments!
Eric H. Urioste
I will shoot out a few things that come to mind.
Read these books no exceptions if you haven't already
1 Rich Dad Poor Dad, and frankly all of Rich Dad Series of books.
2. Millionaire Real estate investor by Gary Keller
Start small and make some mistakes, learn and grow in to bigger deals.
Personally I won't buy a deal unless I can get it at a discount and or under performing so that I can improve the property and pull my $$ back out with in a few years. That keeps me safe and my momentum moving forward with out having massive amounts of cash to invest.
In the areas that I invest in it seems that the multifamily market is a little top heavy right now. I can't say for sure but I do know it has been harder to find deals. Same goes for self storage though that is a little different market and I'm not a expert on either. Im focusing mostly on Mobile home parks. If you decide that MHP's are the way to go, do you self a huge favor and book a boot camp with Mobile Home Park University. Frank and Dave are great.
Best of luck, remember that you can only learn so much by reading and must jump in at some point to learn the ropes and figure out what style you like the best.
ps Thanks for your service!
Hi @Eric Urioste , welcome to BP!
Some of my favorite features here (in case you haven't found them yet) are the files section, the free how-to guides (located under the learn tab at the top of the page), and the networking. There are loads more tools, and resources (it's like Disneyland for real estate. You can't see it all in one day), but those are great places to start!
Thank you for your service to this country! I grew up a Navy brat, and was an Army wife for 14 years.
First off thank you for your service. It makes everything I do and work for possible.
The zero down VA loan is a fantastic way to get into a distressed property that you can live in and fix up while getting your feet wet being a landlord.
I'd recommend thinking about how you want to structure your life. Do you want to deal with rehabbing houses and managing tenants? Would you rather be a silent partner and just see your money grow? Or would you like the face to face interaction and deal making that comes from wholesaling? Is this a side gig or full time job? Endless options but I know I am still figuring it out too and BP has been a great place to read and learn.
Best of luck.
Thanks for commenting everyone! @Patrick H. I'll be honest, I'm not set on any one type. I'm looking at everything and anything as long as it will pay for itself and make me a nice monthly income. I'm just trying to acquire income producing assets that I can add to my retirement pay to cover my monthly expenditures. I'll still continue to work, but that money will be to buy more assets. At least that's the hopeful idea in my head! haha... Have you done well with mobile home parks? Are they expensive to get into? By the way, I just finished reading Rich Dad Poor Dad. Good read! I'll check out Millionaire Real estate investor by Gary Keller. I'm deployed right now so I'll see if I can get it ordered and sent here.
@Carrie and Will, thanks for your inputs! And I'll check out what the site has to offer. As for what I want out of this. To make money and be financially independent! haha.. I'll do it full time if it's working, or just on side if I NEED to work. Silent and watching your money grow sounds good too Will! haha...
Patrick's response is great. Rich Dad Poor Dad will make you think differently about money and Millionaire Real Estate Investor will generalize why real estate is the best investment to make and will give some scenarios of different asset classes, which may help you decide.
What area of investing in real estate first grabbed your attention? For example, if it was hearing about how someone had supplemented their retirement by building their real estate portfolio through Buy & Holds, then you should look into learning more of that. You can also write down your long-term financial goals, and from that, assess what type of real estate investments will help you reach those goals most efficiently. You should also attend local real estate investment clubs to get insights from other investors. I would start studying the market that you plan to live or invest in. That way, when you're ready and know what an opportunity looks like, you're able take action sooner than later.
Think about your investment tolerance. You mentioned that you have set aside funds for your real estate investments. Of that, how much are you comfortable investing, and what kind of returns are you going to require from that? Which asset class will most likely meet that criteria? Also know that you must have reserves set aside for unexpected circumstances/expenses.
Back in 1995, while I was in the Marine Corps, I used my VA loan to acquire my first property. You can do the same if you haven't already done so, and it's 100% financing. I bought a house with a granny flat in the back. I rented out the main house, which covered the mortgage, and lived in the granny flat. If I were in your position, I would consider buying a three or four unit property with the VA loan. 1-4 units is considered residential, and as long as you occupy one of the units, you can use a VA loan on it. You can also use part of the income from the other units towards your personal income to help qualify for the loan. You would be in a great position to purchase a property without tapping into your funds, live rent free, and possibly generate a monthly net profit.
I hope this information was helpful in any way. I'm sure you'll be getting more great advice and information here. Good luck on your ventures!
Welcome to BP and congratulations on your upcoming retirement/transition out of the Blue.
I like your idea of using your VA loan for a 4-plex. That will help limit your expenses.
It is likely that you are going to need some active income for a period of time prior to attaining true financial independence.
You have been given some great tips already on study materials.
As far as Real Estate, there are so many different ways to make money and you have to decide what interests you.
I am a hands off buy and hold rental owner with a portfolio of SFR's and a great property management team. It is pretty boring but keeps me from needing a job.
Feel free to connect if I can be of assistance.
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