About to take the plunge...Am I crazy?

Question

Hello all! First post and I am just learning. This is such a different world!
Our quick history...
Sold our house in 2022 and paid all of our debt to travel in our RV. We purchased a new RV in May and owe $55k on it but that is all the debt we currently have. I am eligible for a VA loan and exempt from the funding fee.
We are going to look into buying a multi-family unit near BYU in Provo, UT to start or possibly elsewhere around SLC if our Realtor finds something. We would live in one unit but would still travel for months at a time in our RV. We have found a Realtor that is also an investor with 50+ doors and she seems eager to help and guide us. I have also been reading guides and watching videos as much as possible.

Any advice? I feel like we are in a good position to try this out. Thoughts?

Jaron Walling · Answer

@Michael Wachel What an exciting time in your life! Sounds like an adventure everyday. I'd ask your wife and yourself WHY Provo, UT or SLC? Pick your base camp wisely. What's driving the growth and where is this real estate agent/investor buying? Learn from there successes and mistakes before you take action.

House hacking is great but if the market supports it you could STR a property while traveling in the RV. It's a win-win. You don't need a multi-family property to pull that off. Don't limit yourself to specific property types. Limit yourself to good opportunities following a strategy. Open to ideas but narrowed on the search.

Logan M. · Answer

@Jaron Walling has a great response to this. I think too many investors get fixated on one strategy or the strategy their friend or agent has pursued even if the market has changed or they just got lucky.

I would highly advise against investing in Provo Utah. Utah County is great but Provo is a pain.

They require you to have a landlord license which can't be set up on automatic payments and my property taxes have gone up more in Provo than any other city in Utah. I think this has to do with the huge bonds that the city keeps passing because they can't help themselves. I own three units in Provo and would never rent to students, way overrated.

If you are not going to rent to students then there is no reason to be in Provo. We own nearly two hundred units in Utah and I get far better cash flow outside of my Provo Rentals.Another tip that your agent won't like me saying but as an investor you need to learn to find your own deals. If your agent finds a good deal it will go to her first and you will get the leftovers.

Feel free to DM me if you have any questions.

Michael Wachel · Answer

@Logan M. Thanks for the advice. I am learning so much literally by the minute as I continue my research. We have family in around Lehi and just feel comfortable with the area so that is why we gravitated there. But the more I think about it, what you say makes lots of sense.@Jaron Walling You make some good points. I need to so more research and really think about what our first step should be. Thank you!

Julien Jeannot · Answer

Sounds like you are in a good position.

In my experience, the first one is the hardest to acquire and not necessarily because of finance. Its a mindset thing and you just have to trust yourself and take the plunge.

With a solid realtor and team by your side, you'll be able to figure things out.

Michael Wachel · Answer

@Corby Goade Thank you! I have a lot to learn but I am excited about the journey!

Michael Wachel · Answer

Thanks, @Nolan Chandler.

I figure house hacking should work for us even though we are just hitting our 50s with a teen. We will have a base camp and still be able to travel in our RV for a month or two at a time. My wife is able to work remotely and I am retired USAF so I have time to learn.

Also, thank you for your service!

Corby Goade · Answer

Sounds like a fun life! I'm actually writing this post from my RV sitting on the beach in Oregon right now. I love the fact that in REI we can do 99% of what we need to do from anywhere.

The Wasatch front is a great place for long term buy and hold. Most deal aren't going to look great the first year, but in five years? Those base hits will turn in to home runs. Keep pushing, you're so close to living the dream!

Best of luck-

Nolan Chandler · Answer

Hey, @Michael Wachel!

Based on what you wrote here, it does sound like you are in a great position to do this.  House hacking is an amazing way to get started--or just invest in general!  I have heard sometimes sellers and listing agents are apprehensive to accept an offer with VA loan financing, but my experience has been positive with the VA loan.  If anything, your agent should be knowledgeable in the VA loan product in case this is ever a roadblock with a seller.  Don't want to write a novel, but if you ever wanted to discuss more, I am happy to do so!

_____________________REALTOR® CalDRE: 02221003 | CA Bar: 322013

About to take the plunge...Am I crazy?

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