All Forum Posts by: Kerry Baird

We are living the adventure and have used every bit of leverage in our military career/s to succeed. Even in our obligated service, we can juggle the income/expense side of things.  For example: 

-When we were young airmen, we had two (now married) friends who lived on their E-3 salary and invested every bonus and every end-of-year salary increase.  We were mil-to-mil and lived on one salary and invested the other...I got out later to be Mom.

-We bought a house at every duty station, including two houses in England.  We bought 3 rental properties in the US while we lived overseas.

-If I had known earlier that we could go up to 4 units with our VA loans, I would have suggested we buy one 4-plex to occupy and rent out for one year; and then would have moved out to do it again on the other VA loan. I could happily be a serial mover, buying gentle fixers to improve.

-Using active duty benefits, you could acquire as much education as possible, particularly in areas which would improve your people-and-logistics management skills.  

-Instead of buying the flash cars with a bonus, we bought more property and drove older cars.  Nothing sadder to me than a parking lot full of Audi's.  LOL

-We invested in the DoD Savings Deposit Program, while in combat zones and earned 10% on our money.  Used this and funds in Thrift Savings Plan to buy more property.

-We used larger tax returns from tax-free deployments to invest.

-Your One Thing for increasing income is working diligently on your OPR, so you hit your next promotion.  Then invest the difference. :D

We recently closed on a personal residence with a VA loan. Request your VA certification online now.

http://www.benefits.va.gov/homeloans/purchaseco_ce...

The roof must have at least 5 years left on it...so no dire fixers.  You must agree to owner occupy for at least one year.  You still have to qualify for the loan.  You can go up to 4 units, to include town-homes, as long as you occupy one unit.  

The process was relatively quick and easy for us...hubby is still active duty so W-2 income is still present. Good luck!

Perhaps www.realestateexpress.com would work for you

Are there States where you lend or don't?

We finally used our VA loan on our own home a few months ago. With the VA, you can go up to 4 units. You must owner occupy for at least one year.

We have done as you aim to do. We were stationed in the UK for a large part of our investing career and recently relocated back to the States. Some quick thoughts: you can buy up to 4 units with a VA loan, rent the other units out while occupying one unit. You can also borrow from Thrift Savings to buy real estate, and repay yourself. Additionally, when we deployed to hostile locations, we used the 10% savings program allowed in those situations. Because we had a lot of tax free income as well as real estate deductions, we have had some large tax returns. We have used those to buy additional rental property. Lastly, we bought houses with good bones and lived in them while we saved up and renovated them. We were dual enlisted when we started out and lived on one salary and invested the other.

12 Single family rentals

Mix of loans and strategies.  Once we turned on direct marketing, it took just a couple of mailings to get a bunch of properties.  We fixed and rented, or fixed and sold most of those. Right before the Big Crash, we sold off everything...it felt frothy in our market and we wanted out.

From 2012 to now we have been buying and holding, with 20-25% down, so it is taking longer to acquire.  We're also raising 3 kids so excess cash finds its way into their bellies and pockets, LOL. 
1. OO 3/2 SFR conventional loan, lived in while fixing, then sold.
2. OO 4/3 SFR, occupied, then rented, sold to tenants.
3. NOO 3/2 SFR, conventional, fixer, then rental. Sold.
4. NOO 3/2 SFR, probate, conventional loan, rented and later sold to tenants.
5. NOO 3/2 condo, borrowed from my mom.  Fixed, rented, sold...had to f/c on buyer. Fixed and sold again.
6. NOO 3/2 SFR, the owner carried the note.
7. NOO 2/2 SFR, fix and flip.
8. NOO 3/2 SFR, sub2, fix and flip.
9. NOO 3/2 SFR, sub2, fix and flip.
10. NOO 3/2 SFR, sub2, fix and flip.
11. OO SFR 4/3. Lived in while fixing, sold.
12. NOO SFR 3/2. Flipped.
13.NOO 3/2 SFR. Sub2, fix and flip.
14. OO 4/3 SFR, conventional. Sold.
15. NOO turn key rental, conventional.
16. NOO turn key rental, conventional.
17. NOO turn key rental, conventional.
18. OO 4/3, VA.
19. NOO turn key rental 2/2, conventional.

These ideas come to mind:

buying on lease option

owner or seller carry...ask the seller to be the bank for you and carry back a note. 

Partner with someone who qualifies for mortgages or has cash to bring to the deal

Wait and save up the larger down payments and reserve requirements

Lots of good advice above.  I'll just chime in on big banks.

I just closed a fifth mortgage using Flagstar. As mentioned above, they want 25% down and a higher interest rate than under 5. They also wanted reserves for all our current properties. That meant Flagstar wanted to see six months "liquid reserves" which would cover all PITI expenses for each property we own. They also want to see a detailed picture of money flows, where your down-payment comes from, how liquid your money is (such as in an IRA, they wanted to see what it would take to get a loan from our retirement fund if we counted that money). This is a big lender, and they will go up to 10. There were more hoops to jump through than on previous loans.

We had a few years of experience flipping/rehabbing/renting in the US, and were posted to England.  We bought two owner-occupied houses to improve and sell in the UK, which is an aside.  The only way to meet our investing goals of buying a number of buy-and-hold properties was to buy with boots on the ground back in the US.  We used a BP member, a Realtor, to purchase duplex units in Texas.  He had a team set up to include a mortgage guy and property management.  The properties were new-build, under a year warranty.  That was in 2012, and we still have not been inside the properties.  They have been rented solidly during that time, and property management has been terrific.  In 2013, my MIL was diagnosed with cancer, so we decided to buy, again sitting in the UK, in FL.  

This time, buying at a distance, I asked a family member who owns a title company for a referral for a local investor-friendly Realtor.  We built our own team from a distance.  This next property has had a few repairs needed, because it wasn't a new build property.  Still, the property manager has been OK, and we've been able to keep it rented.  It can be done, and the strength is in the team you have to assist you.