All Forum Posts by: Ian Morales

Puerto Rico offers a 40% tax credit for tourism projects. The smallest of these would be a bed & breakfast that can be as little as 3 rooms. (3-5 rooms total) Host must live on site, and breakfast must be provided. There are many other requirements, but it seems like in theory you could use your VA loan to buy a 4 unit building, live in 1 unit, STR the other 3 and receive a Puerto Rico tax credit (which can be sold to high income earners for between 70 to 83 cents on the dollar) for your purchase, rehab and 1st years operating costs.

It is a lot of paperwork and compliance. I got halfway through it once (then sold the 4plex) and am halfway through it a 2nd time on a more expensive building. If I had to do it again, I would personally not do this much work for a 4 plex, I would do it on a bigger hotel project. But you are limited with your VA loan to 4 units or less. So in theory, I think this is possible. I do know several active military members here who have used their VA loans to buy 4 units and they are doing STR very successfully. They are not using the tax incentives. If you do down this route, it is critical to meet with Tourism *before* your purchase. And this is not legal advice, lots to explore on your own if you do this.

@Ian Morales If you plan to use your VA loan, you must intend to live in the home for at least a year. Where are you currently living, and will you be moving after deployment?

To answer your question, I would take the time right now and while on deployment to build up your knowledge and start networking with folks on FB and the BP forums, depending on your connectivity while deployed. 

Why do you like PR and FL? There's nothing wrong with those markets, but I just want to see how you decided on those two markets. 

@Ian Morales Semper Fi.  

I purchased my first duplex as a long distance rental in Hunstville, AL. I actually closed on the deal while doing MEU work ups off the coast of South Carolina. 

Would I do it again... nope. 

During my MEU I read books while everyone played RDR. After countless podcast and 30 ish books I was in a much better position to invest. It also helped that my bank account was flush with cash. 

4 years later I have 24 units. The only investment I've ever sold is that first one in Hunstville. 

If you have any more questions I'd love to help. Feel free to DM

Quote from @Jaron Walling:

@Ian Morales Do not buy real estate yet. 

Wait until you're stable and planning to live in place for 3-5 years. When you're deployed can you read books? I would read and get into the weeds on market research. You could come back to the states and be 2X more knowledgeable on SFR, BRRRR, or small multi-family deals. Avoid risks!

From the looks of your skill/knowledge level, this sounds like the best route to take. Additionally, deployment will allow you to save up money (go to the gym, eat at the dfac, don't waste on stupid **** you don't need) and be financially better prepared to pull the trigger when you get back. 

@Ian Morales Do not buy real estate yet. 

Wait until you're stable and planning to live in place for 3-5 years. When you're deployed can you read books? I would read and get into the weeds on market research. You could come back to the states and be 2X more knowledgeable on SFR, BRRRR, or small multi-family deals. Avoid risks!

Thank you for your service & welcome to BiggerPockets, @Ian Morales!

Multifamily investing with VA loans is a common start for people looking to begin growing a portfolio.

It is a solid strategy for gaining acquisition experience, project management experience and property management experience.

For gathering more information & knowledge, I'd recommend checking out BP's Free Webinars.

All the best to you on your journey!

Abel

@Ian Morales- Welcome!