My Initial Idea Getting into Real Estate Investing

[Dennis Dougherty]

So, I am completely new.  I don't really know terms or have any type of real understanding when it comes to real estate investing.  So, I am going to throw out my thinking on something to get started and wondered if someone could just let me know if it seems like an okay idea of not.

I am currently in a home (VA loan) that is costing me $4054 a month (haven't even been in the property a year yet and have a 5.75% interest rate). We had to get into the house quick and now, we don't like it and want to get another house.

My thoughts are we should downsize a bit, maybe even get a new construction in a nice neighborhood for closer to $2500 a month. Since I will be using a VA loan again, I'll need to stay in the new home for one year.

My current home will only rent for about $3500 a month so I'll be losing several hundred dollars a month due to the mortgage being higher.  But, I will lower my monthly obligation to around $3000-3500 ($2500 new mortgage plus $500 delta on previous home mortgage).  Additionally, I'll continue to build equity in the other home with a renter.

Now, I may be able to make $10,000 if I sold the home but it just seems as if building the equity would be a better option.  The home is located in a Master Plan neighborhood with good schools, nice amenities, etc.

My plan is to then move out of the 2nd home in a year and rent it for an actual profit and move into a new home using my wife's VA loan entitlement. Rinse and repeat.

Just curious if this seems like a legit way to start to build some sort of portfolio. I am also interested in possibly working the STR piece at some point. Charleston, SC area seems to be a popular place in that regard.