All Forum Posts by: Steve Marshall

Luke,

I bought a house after a PCS in '07...everyone told me appreciation was a guarantee.  I can't tell you in strong enough terms...don't do it.  Appreciation (over a 3-4 year period) is speculation and no different than gambling.  Buy deals based on the current numbers.  If it doesn't cash-flow on day 1, don't buy it.  (my opinion based on painful experience).   

As an outside observer I think you're trying to hard to make a deal happen now.  You forgot your most obvious choice...rent where you live, buy an investment when the time is right.  

As active duty it is very attractive to try and buy, but we don't choose when we move and there may not be a deal available.  If there isn't...don't force it, you could be regretting it for a long time.  

Now to your specific situation:

For your situation I would either buy a fix/flip if you're willing to put in a lot of work or house hack the duplex.  The duplex doesn't have to cash flow while you're in it, but you should plan to have it cash-flow on day 1 when you leave.  (Don't forget to factor in Property Management...hard to self-manage when you're at Rammstein)  Remember though...renting is an option if the deal isn't there!  

Good luck!  

Steve Marshall

Steven,

Welcome.  Always good to see military and former military on here.  Good luck...I hope to be transitioning out of the military in about 5 years and do the same thing, work towards true retirement.  

I look forward to following your journey on here.

Steve 

Nathan, 

Welcome to BP.  I'm active duty military and have recently started investing myself.  I look forward to following you on here.  The blogs have been my biggest motivator/learning tool on here.  

Steve

Welcome, Ryan.  I hope to make the transition to post-military life in about 5 years.  I look forward to following your journey on here.

Steve 

Love to meet up in Thailand.  I live in Bangkok, and I'd offer to let you crash...but I have 4 kids.  No one wants that.  

Hit me up on  a PM and I'll be glad to discuss your Thailand plans. I've only been here a year and a half, but I've seen most of the country.  

Steve 

Enjoying the blog, brother.  Keep them coming... can you elaborate a little more on the steps you took to establish the biz and get your first clients.  (maybe I missed it)

Steve 

Tyler/All:

I was stationed in Oki, so I am a bit jealouse. I'm back overseas now in Bangkok and just bought my first potential BRRR from over here. I usually recommend immediate action, rather than waiting, but I think in your case, unless you have a team on the ground in the Ft. Lee area you may want to wait.

I agree that the best possible route is to use your VA and house-hack...after a year you can move on if you so choose. A caveat to this may be the Ft. Lee area...I'm not sure about the specifics of that area, but make sure your numbers work.

Steve 

I am also active military...and while I have gone a couple months without a paycheck due to a screw-up by finance, I can't sympathize with someone who is consistently late.  Our pay is ALWAYS in our account on the 1st or before (unless it's a 1-off issue like a PCS or debt collection)  If you accept direct deposit/e-check/pay-pal etc, it seems like it's on him to make it happen.  If you don't have a way to electronically transfer rent...it's on you.  

I think retirement should be a number, like Russell says.  From there, pick a date and design your plan around that.  x# of doors per year, increasing each year is a typical way to do it.  Shoot for it...if you miss it, you can continue until you hit your number.  

Example: Russell says 150K per year.  Assuming 150 dollars per month/door translates to 1800/yr.  150000/1800 = 83.3   Russell needs 84 doors.  (Noted that cashflow will increase as properties are payed off...so life will get better!)  

84 doors

4 this year

8 next year

16 the year after that

25 the year after that

31 the next.

Russell is done in 5 years.  

Now comes the hard part.  Making that happen.

I think this small correction highlights exactly why REI makes sense. A 3/2 in NW florida, purchased below market value and renting with a $100-200/mo cash flow is not going to crash like the stock market can (is?) If you invested in the stock market a couple months ago, you've lost 10%. You had no control. Sure, you can do your DD and pick stocks using all available information, but in reality, unless you have access to information that no one else has, you're probably not going to beat the market.

REI is different...you can pick and choose your deals, buy below market, add value, put sweat equity into property. Plus you have tax advantages... If you don't buy into a super-hot market and bet on appreciation...REI is relatively safe.

This is why I pulled most of my money out of the stock market a few months ago...  I'll probably put it back in at some point, but right now...Real Estate (bought correctly) is a much better investment in my opinion.