All Forum Posts by: David Tuma

Hey David! Congrats on making the moves and the eagerness to find out as much as you can. Thanks for your service! If you work with a mortgage broker, they typically do their best to find you the most competitive rates as they aren't tied to any one lender. There are always fees and yes, the VA Loan is a great way of getting started. Here's a few items I wished I had done a better job on from my very first house:

1. Moving to a new duty station means increase in insurance and and property management. Don't let it be a deal killer, it's part of the business and you'll make out fine if you can hang on to this property long-term.

2. Collecting local trusted contractors. I totally failed in this regard. Bought a new house so it didn't need much maintenance. Then when I left and the house needed maintenance, I had to rely on the property manager for contractors... it didn't work out well for me. It might be totally different for you.

3. I went through SEVERAL property managers unfortunately. Since you're going to be the "property manager" while you are there, I recommend putting together some sort of SOP or some sort of guide-sheet you can hand a property manager. I didn't do this and my expectations vs what I got just didn't line up and it was very frustrating for me. I'm sure it was no cake-walk for the property manager either. 

4. Summer movers in the military. This is a BIG one I had no real idea about. Try your best to coincide the end of tenant leases during the summer months and start marketing the rental early enough. You get some people that are like you and like to plan early. If you wait too long and your rental gets stuck in the fall and winter months, it may take a little longer to lease. 

5. Stay away from young military couples who have such a short amount of time being in the military and are already married. They're not all bad but for many of them, it's their first time away from home with big responsibilities and they are still trying to figure it all out. They may make the money but they don't know/understand basic things like changing out air-filters for the HVAC or simple items like cleaning up after themselves. They think because you have a rental, you're somehow Mr. Moneybags. LOL!

Ok.. made this post too long.. Best of luck! You got this! 

I assume you probably know of @David Pere in that case, but it would definitely be worth checking out his podcast Military to Millionaire if you haven't

@David Tuma Are you using a VA loan? Hopefully you're taking advantage of it.

You can shop around for different lenders and lock in a rate for 60 days, but it doesn't really matter if you qualify for the VA. 

VA loans offer several advantages, including no down payment, no PMI, and often lower interest rates compared to conventional loans. That depends on you DTI, credit, etc.

As a new home owner at 21 y/o you're basically asking about personal finance. House hacking at 21 won't change you're life, but it's a good step in the right direction! Getting smart with your $$$, living below your means, following a budget, and buying rentals at that age is extremely powerful. If you share some of the numbers (PP, rents, location, property condition, etc.) you'll get more advice. 

@Craig Curelop's book The House Hacking Strategy is definitely worth reading: https://www.amazon.com/House-Hacking-Strategy-Achieve-Financ...

There's no reason not to shop for the best interest rate you can get. I rarely see banks willing to lower their rates (especially for new customers) but it's definitely worth seeing if you can't do better.