Buy and hold investor from Austin

Buy and hold investor from Austin

Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes

Hello everyone, I bought my first house as a lieutenant in the Army after living in an apartment for a year and realizing I was paying someone else rent when I could be paying myself. The interest rate I got (6.75%) tells you how long ago that was.

Being stationed in Germany put a hold on building my empire, but since leaving the Army I've bought 3 more SFH in Austin. All cash flow positive, mainly due to luck since I can't claim to know what I am doing, besides reading a few books.

My grandmother owned 5 rental houses in Austin, all paid off, and that was her retirement plan. She never had to worry about Social Security checks or anything. I decided to do the same. The market is at a point now where I can't be successful unless I really know what I'm doing so that led me here.

My wife is managing our properties so she's been on BP at times but I didn't know about it until recently when talking to a vet buddy who is also into real estate (lots of vets get into real estate).

At first my goal was to get 5 properties that I could use to retire and then leave to my son. Then I had another son. So I changed my goal to 10 properties. Then I had a daughter. At that point I figured if I was going to get 15 properties (5 for each child) I might as well go all in and shoot for 100. After all, who knows how many grandkids I'll have... haha. 

I don't really like the idea of buying 1 at a time, so now I'm looking to move into multifamily. 

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Real Estate Broker · Houston, TX · Member since 2015 · 81 posts · 39 votes
9y
Well you came to the right place Allen. There's tons of guides and useful discussions on how to grow your rental portfolio. Depending on where you invest you can sometimes still get that 1% rule on your rental. If you have any questions or want to network more feel free to reach out. Best of luck!
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  • Real Estate Broker · Houston, TX · Member since 2015 · 81 posts · 39 votes
    9y
    Well you came to the right place Allen. There's tons of guides and useful discussions on how to grow your rental portfolio. Depending on where you invest you can sometimes still get that 1% rule on your rental. If you have any questions or want to network more feel free to reach out. Best of luck!
  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    9y

    @Andrew Allen, Welcome to BP.  Be sure to read the Education section above it is loaded with great information.  I had invested in real estate for 20 years and when I read through it I learned a lot.  You can also set key word alerts for topics or areas of interest like "buy and hold" or "Austin".

    I would especially look at the E-books on renting houses.  It is really informative.  I am currently at about 30 to 35 units and so the information on automation is really helpful.

    Before I forget thank you for your service. Don't forget the VA loan option for your properties.

    Good Luck.

  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    Hey @Andrew Allen Welcome to BP!!  

  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y

    @Jerry W., thanks for welcome and the tips! Regarding the VA loan, that is why a lot of vets get into real estate, and that is how I bought my first house. Great tool. I paid that one off so I'm planning to use it again in the next few years when I upgrade my primary residence.

  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y
  • Rental Property Investor · Carlisle, PA · Member since 2013 · 1k+ posts · 543 votes
    9y

    @Andrew Allen, welcome to BP.  You have come to the right place.  I am active duty so I understand what you are talking about!  Check out the podcasts if you haven't already.  There are quite a few episodes that discuss scaling your real estate business.  All the best moving forward!

  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y
  • David IvyPro Member
    Real Estate Broker · Austin, TX · Member since 2016 · 353 posts · 699 votes
    9y

    @Andrew Allen

    Welcome to BP! I'd be very interested to hear your perspective as both an Army vet. and Austin area investor on Killeen/Ft. Hood, military tenants, and "military towns" in general. I'm in Austin, but I added a fourplex in Killeen to my portfolio early last year. I felt like I understood the economy and rental market there well enough to know that I wouldn't lose my shirt. The numbers on the property were also fantastic. However, I'm still very much learning the intricacies of renting and managing a property in a military town.

    I'm happy to buy you lunch sometime soon! Feel free to give me a call or email.

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Andrew Allen

    Welcome to Bigger Pockets. The Bigger Pockets book store if full of great books: https://www.biggerpockets.com/store

  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y

    Hi @David Ivy! Thanks. 

    Sure would be happy to meet up. I'm not sure about the Fort Hood market. Some buddies and I are actually discussing what to do about our investments there. On one hand there is a constant flow of new renters. My house has been vacant maybe 2 months in the past 14 years. On the other hand the new home construction there is out of control and there is absolutely no inflation in rents or home prices. Both have actually appreciated less than inflation.

    I'm hoping to get some advice on this from others on this site at some point.

  • Long Beach, CA · Member since 2016 · 10 posts · 2 votes
    9y
    Can anyone give any insight as to what may happen if Trump does get the approval to increase military funding? How have such events affected real estate in the past?
  • Brooklyn, NY · Member since 2016 · 152 posts · 44 votes
    9y

    @Andrew Allen

    You are well on your way with properties you have this far in your portfolio. Keep learning and taking action

  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y

    Hi @Andre Bederio, unless he's talking about opening bases or drastically increasing the size of the force I don't see it having much impact in most military communities. The biggest impacts would be from BRAC (where they're closing bases). BRAC can destroy a small military town overnight.

    One thing that would help is if they start talking about less deployments or bringing troops home from overseas. They will need somewhere to live in the U.S., and the first place they'll go is existing bases.

  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y

    Thanks @Iverem Rose!

  • Long Beach, CA · Member since 2016 · 10 posts · 2 votes
    9y
    Thanks Andrew Allen . My initial approach is to stick around military bases. I'm currently in escrow for my first duplex in Killeen.
  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y

    @Andre Bederio military tenants are great in that they are less likely to destroy your place and they get a housing allowance every month (that you can easily figure out). They also will stay there for 2-3 years typically. But beyond that is unlikely.

    Congrats on the duplex! Do you have a property manager? I never found any good ones in the Fort Hood area. 

    Like I said previously, don't expect rents to rise much. ever. Too much building going on around there. As long as you're starting off cash flow positive you should be fine.

  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y

    And Killeen (and most military towns) are probably like that. They are dependent on 1 industry. There's no reason for anyone to move to Killeen except to support the military. Fort Hood is safe from BRAC, and its so big a lot of vets retire there, so there is (slow) growth, but I would be very careful investing in other military communities.

  • Long Beach, CA · Member since 2016 · 10 posts · 2 votes
    9y
    Thanks, that's why I see myself sticking to military towns for the beginning of my investing career. As far as PM, I intend to stay with the same company that's been managing it for the last 12 years, unless we encounter some issues with them. The company is Armadillo Property Management.
  • Real Estate Agent · Killeen, TX · Member since 2016 · 71 posts · 25 votes
    9y
    Welcome to BP
  • Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Andrew Allen Welcome to BP and thanks for your service!

  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y
  • Killeen, TX · Member since 2015 · 85 posts · 60 votes
    9y

    Welcome...I'm retired military and I currently have 10 properties throughout the Killeen area.  Good luck building your empire.  I'm sure you'll do fine.  

  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y

    @Account Closed, awesome! Thanks!

  • Investor · Leander, TX · Member since 2016 · 105 posts · 40 votes
    9y
    Hi Andrew Allen , Welcome to BP. I am from Austin and recently bought a rental in Killeen, rehabbed it and got it rented yesterday. I am working on refinancing the hard money loan. Kevin McNeely and Brian Adams are seasoned players in Killeen market and are also active on BP. Good luck to you.
  • Investor · Austin, TX · Member since 2017 · 91 posts · 106 votes
    9y

    Awesome @Nirmal Khanderia and pleased to meet you!

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