New Investor Seeking Input on Plan

[Justin Molzhon]

Hello Bigger Pockets! 

I am currently active duty military but am transitioning out in September. I am currently stationed in GA and my wife and I have a house here with a mortgage at the very top of our budget. Our plan is to move home to KY and start investing heavily and sooner rather than later turn it into a family-run business that encompasses most of everything we need from agent to tradesmen to property manager. The current plan is to use our VA loan to purchase a primary residence in the area and hard money to fund our first BRRRR. We anticipate selling our house in GA to pay down debt and cover any immediate expenses/float us for a couple months. Her side of the family has the trades covered when it comes to rehab and I have experience in the purchase and land lord side of things. My biggest concern is that this will be our first BRRRR and using hard money seems a little overwhelming. What my question/concerns really come down to is looking for potential pitfalls in this plan since I am the first person in our circle to pursue real estate. I would also love to get connected to folks in the central KY area! I know there's probably many questions about this but I tried to give a very simplified run down. I'd be happy to provide more in-depth info though if anyone wants to chat more about it.

- Just Molzhon

[Taylor Dasch]

Biggest pitfall IMO would be knowing a good deal when you see it, the first thing I would do is research my market, the last thing you want to do is Refinance the BRRRR only to find out your in the hole.

I would sell the house in GA, use your VA loan to purchase a MFH that you can househack for a year or two. Use the rest of your profits from the sale to purchase an investment property that will cash flow well. Now you have monthly cash flow and are hopefully living for much less than you would in a SFH.

Then start connecting with wholesalers and other investors, analyze deals, drive for dollars, etc to find your next deal. At that point, the next step depends on your goals and timeline. If I wanted to scale very quickly and had plenty of deals in my market, I would flip and scale. 

Since I dont come across deals that I would personally invest in very often, I personally just find my own deals and purchase them off market, rehab, rent, and refinance into a conventional loan without taking any cash out. This is less risky but is not the best way to scale, however it aligns with my goals and my timeline which is the important part! Good Luck!