Househacking after college with twin brother, both military!
New to Real Estate · WI · Member since 2024 · 9 posts · 3 votes
Househacking after college with twin brother, both military!
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Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2yQuote from @Mason Griffin:
Hey everyone! My twin brother and I will be graduating with bachelors degrees in finance this December from the University of Wisconsin Whitewater. Both of us are in the army national guard, so only about $15,000 in debt to take care of. I am currently doing a construction estimating internship in Milwaukee Wi. My brother and I want to get into real estate investing for passive income, and we're thinking about starting off with a duplex in a year or two after saving some money, that we can live in and rent other unit(s). We also want to look into using our VA loan for this, potentially doing a dual mortgage. Is this a smart plan? and does anyone have some advice on what we could do to get into the real estate investing world in a better way, right out of college with limited cash? We are both motivated, but seems like there are too many options to choose from, I feel like storage for boats/cars/RV's is my end game, so I can spend my days fishing lol!
Financially speaking house hacking with a duplex in Milwaukee is a no-brainer. That's the reason why despite 66,000 duplxes, there are barely any on the market (about 120 listings currently excluding the hood) - the reason is simple, you are basically an idiot if you are selling your duplex when you buy another house. You already know how to manage and rent it, might as well keep it and enjoy the cash flow. It is also a low-risk way to learn all the principles of real estate investing with very limited risk, gain experience with evaluating, buying, repairing, renting and managing a property.
10 Replies
- Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes2y
If you can both do VA that would be awesome. In theory if you get a duplex, triplex or quadplex and you two live in one unit you can make money right off the start from there. Than your twin can do the same and you can move into his and rent your unit out. I am not in Military so my knowledge of Va is limited based off how long you have to live there, if you can refinance into regular loan later on once you have some equity etc. But house hack while you're young! It sometimes isn't as smooth once you are married or have kids if you dont want to have a shared space with family around.
- 2ySarita ScherpereelBusiness MemberReal Estate Agent · Chicago, IL · Member since 2018 · 659 posts · 376 votes
Hi @Mason Griffin Thank you for your service! VA Loans are a wonderful way to get started. Especially, if you and your brother can both use your VA benefits individually. That way you can collect more doors. You need to find out how much of the VA benefits you qualify for with the certificate of eligibility (if you haven't already checked).
I have been lucky enough to work with several VA house hackers in the Chicago market. VA loans are wonderful but you MUST MAKE SURE YOU HAVE A GREAT REALTOR FOR THIS. This loan product has a VA inspection during your appraisal (nothing scary). But if you're realtor is not pointing out issues that could get flagged during this inspection you might have some surprises on the deal. Sometimes owners are unable to fix or update these issues prior to close. It's ideal to know these in advance before pursing the property.
- Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes2y
Mason welcome to biggerpockets
I also went to UW-W
Suggestion for the next 10 years , if possible
purchase four plex ,
duplex , triplex,
last resort sfr for house hacking ( no immediate cash flow )
Rinse and repeat until your personal lives change ( family, relationship, etc )
Each state you purchase property :
Develop a decent team to handle your investment properties while you enjoy your fishing/etc
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes2y
Quote from @Mason Griffin:
Hey everyone! My twin brother and I will be graduating with bachelors degrees in finance this December from the University of Wisconsin Whitewater. Both of us are in the army national guard, so only about $15,000 in debt to take care of. I am currently doing a construction estimating internship in Milwaukee Wi. My brother and I want to get into real estate investing for passive income, and we're thinking about starting off with a duplex in a year or two after saving some money, that we can live in and rent other unit(s). We also want to look into using our VA loan for this, potentially doing a dual mortgage. Is this a smart plan? and does anyone have some advice on what we could do to get into the real estate investing world in a better way, right out of college with limited cash? We are both motivated, but seems like there are too many options to choose from, I feel like storage for boats/cars/RV's is my end game, so I can spend my days fishing lol!
Financially speaking house hacking with a duplex in Milwaukee is a no-brainer. That's the reason why despite 66,000 duplxes, there are barely any on the market (about 120 listings currently excluding the hood) - the reason is simple, you are basically an idiot if you are selling your duplex when you buy another house. You already know how to manage and rent it, might as well keep it and enjoy the cash flow. It is also a low-risk way to learn all the principles of real estate investing with very limited risk, gain experience with evaluating, buying, repairing, renting and managing a property.
- 2yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Starting with a duplex and using a VA loan is a wise decision for first-time homeowners since they often have cheaper interest rates and do not demand a down payment. VA loans are available for multi-family buildings as long as one occupant inhabits each unit. Building a network of local real estate agents, bankers, and investors may help you identify opportunities and get support. Continue to educate yourself using books, podcasts, and internet resources. Concentrate on knowing local market dynamics, financial planning, legal and tax implications, and long-term objectives. Consult with a real estate attorney and a tax counselor to determine the optimal transaction structure.
Good luck!
NETWORTH BUILDERS5236 Reviews - 2yRebecca KnoxBusiness MemberSpecialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
If you're able to, start networking at local Milwaukee real estate meetups---this is the very best education and inspiration that you will ever find--I started real estate by signing up for a guru program but by far, my best education came from speaking to other active local investors who are actually doing deals or have built financial freedom---the nationwide guru program only taught about flips and rentals but there are so many different strategies that locals have and are successfully doing. My mind is blown by all the creativity and we're lucky that we're in Milwaukee and from my experience, most people are very willing to share their brain with you. I agree with Marcus...I have found that house hacking is the #1 ways that people have started in real estate in Milwaukee and if you are able to use VA, even better. Also, for VA loans, check with Dennis Kahn at Homestead Mortgage.
- Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes2y
What might be interesting is if only ONE of you gets the VA loan, but both can be on title. This way you can buy the second property using your brother's VA loan. I'm not sure how this could be structured so speak with a lender but on the surface that would be great if you could get two properties with zero down.
- Real Estate Agent · Charlotte, NC · Member since 2021 · 147 posts · 150 votes2y
@Mason Griffin Welcome to BP and the forums!
This is awesome that you and your brother want to do this together. I think you can definitely make a great team, especially since both of you have the potential to utilize your VA loans.
Here are some of my quick thoughts:
1) You say you want to invest in real estate for passive income. Myself and I'm sure many more experienced investors would agree that real estate is almost never completely passive. Even if you make it mostly passive with management, what is your passive income goal? I'd define that first. Is it enough to quit your W-2? Is it enough to pay xyz bills? Etc.
2) Starting with a duplex is a GREAT idea, especially splitting it with someone (your twin). You'll be subsidizing mortgage with renters and splitting the rest of costs with him. AWESOME!
3) I'd definitely connect with an investor friendly agent and/or lender on here or from local meet-ups to help guide you on your loan strategy.
Hypothetically speaking, one idea you can each use an FHA loan to get properties, then move out and each use a VA loan on the next property. If you did this, you'd already have 4 properties and potentially 8, 12, or 16 units under your belt in the next 5 to 10 years.
4) Get super focused on your strategy, house-hacking, storage, etc. and concentrate your efforts on that. It is easy to get distracted, but where you focus the most attention will get results.
5) It sounds like you want to live a life by design. "Spend my days fishing" A small & mighty portfolio might be the best approach. Look up Chad Carson and his book Small & Mighty Real Estate Investor. It is one of my favorite RE investing books.
Good luck with everything!
- New to Real Estate · WI · Member since 2024 · 9 posts · 3 votes2yThank you so much for the great advice! And ideally, I am perfectly ok with managing the properties on the side of my w-2 job with my brother, but my goal is to get enough cash flow for myself and my brother to be self employed, and hire property management and any needed employees to reduce our workload as quickly as possible, so we can continue to expand into other investments. I am only 22, so my plans will probably shift, but I’m just trying to start getting a timeline and plan together for when we graduate. i appreciate your advice a lot, and i love the BP forums already! I will check that book out as well!
Quote from @Anthony Swain:
@Mason Griffin Welcome to BP and the forums!
This is awesome that you and your brother want to do this together. I think you can definitely make a great team, especially since both of you have the potential to utilize your VA loans.
Here are some of my quick thoughts:
1) You say you want to invest in real estate for passive income. Myself and I'm sure many more experienced investors would agree that real estate is almost never completely passive. Even if you make it mostly passive with management, what is your passive income goal? I'd define that first. Is it enough to quit your W-2? Is it enough to pay xyz bills? Etc.
2) Starting with a duplex is a GREAT idea, especially splitting it with someone (your twin). You'll be subsidizing mortgage with renters and splitting the rest of costs with him. AWESOME!
3) I'd definitely connect with an investor friendly agent and/or lender on here or from local meet-ups to help guide you on your loan strategy.
Hypothetically speaking, one idea you can each use an FHA loan to get properties, then move out and each use a VA loan on the next property. If you did this, you'd already have 4 properties and potentially 8, 12, or 16 units under your belt in the next 5 to 10 years.
4) Get super focused on your strategy, house-hacking, storage, etc. and concentrate your efforts on that. It is easy to get distracted, but where you focus the most attention will get results.
5) It sounds like you want to live a life by design. "Spend my days fishing" A small & mighty portfolio might be the best approach. Look up Chad Carson and his book Small & Mighty Real Estate Investor. It is one of my favorite RE investing books.
Good luck with everything!
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