All Forum Posts by: Brandon Thomas

@Nicholas L. Thanks for the advice! The DTI piece will probably be a huge concern, especially if buying a multi family in San Diego a second time is the plan. I'll most likely have to adjust and find another plan for 2023. That's a great idea talking to lenders to find out what I could theoretically qualify for. I did know this, but completely forgot about it as a means to run numbers through, so I appreciate the reminder!

@Paul Moore Thank you for providing me with another option! I like this idea as it is a passive investment because it aligns well with my goals. Currently, the only syndication I've been involved with is through Fundrise. Typically about a 7% return from what I've seen from the last year and a half. 

@Nicholas L. I will most likely receive orders to San Diego or Oceanside, so I will need to be there for at least a couple years. California is also my home state so I can also see myself settling down here post military. I really want to invest here as well since the appreciation of homes in the SoCal area seem to be a great way to accumulate wealth.

Several people in this thread (which I appreciate everyone's response) keep mentioning the DTI ratio that I'll run into. Since I intend on renting out these properties, won't tenants also be included as a source of income which should subsequently decrease my DTI?

@Mike Robb Sure! I will message you to set up a good time.

@James De Leon Thanks for the words of wisdom! I definitely plan on using these next few months analyzing deals and getting comfortable with them so that I can make a quick and educated offer once I get back to the states whenever a good deal comes my way. It seems like my DTI ratio will be a hurdle that I also need to look further into, especially when investing in San Diego.

As for wholesaling, it won't be my "end-all-be-all." This is one of the only strategies that comes to mind when attempting to find new money for a down payment. Using a HELOC on my current property is also an option.

Thank you so much for your responses! So in regards to wholesaling being a critical piece to this puzzle, would taking out a HELOC on the property that has $200k in equity be a wise decision to fund the down payments of these properties? What about finding a hard money lender?

And I completely agree that no plan survives first contact. Are there any recommendations to provide some contingencies that I could look into? Any recommended strategies?

Hello BP community! I am looking for stable financial freedom in the next 5-6 years investing in multi-family properties. I am currently active duty military and I own a single family rental property in Oceanside that has almost $200k in equity and has very negligible cashflow (for now).

My plan: Upon my return from deployment at the end of the year, I intend on using the VA loan to buy a multi-family home in the San Diego or Oceanside area (depending on my next set of orders) and use it to house hack. This property would most likely be in the $1-$1.5 mil price range. By house hacking, I would save on average about $1500/month, yet I will most likely have minor negative cashflow in the first 2 years, but the properties should have high appreciation.

In 2022, I intend on purchasing two multi-family rental properties out of state for the sole purpose of cashflow. They would be in the $200k price range. In order to fund these properties, I intend on focusing my craft on wholesales and building/saving the money for the down payments on the houses. My intention is to find houses that can yield $400-$500 in cashflow each. 

In 2023, I will be ending my services in the military and I intend on using the VA loan one last time (after refinancing the first MFH) to buy another MFH for appreciation and to use as another house hack. In order to ensure stability during eventual crashes in the market, I plan on paying off my 5 properties. I would use my W2, money saved through house hacking, and income generated from wholesales to pay off the principle of the cheapest property in my portfolio. I would then use the increased cashflow from that property to pay off the second cheapest property. I would continue doing this until all properties are paid off. At the end, I should be generating nearly $20k in cashflow and be worth $3mil.

What do you think of this plan? Are there any gaps to my train of thought? Is there a better/faster method in order to accomplish my intent of stable financial freedom? 

As a new investor, I am a sponge to advice and critiques. Thank you for taking the time to read this and I look forward to the responses!