Buying Home Near Military Base

[Malcolm Miles]

BP family, good afternoon. I need some advice on whether buying a House near a military base is a good idea. We won't be at this base for more than four years so I'm curious if buying a house here with plans to rent it is a solid investment. I plan to purchase the house as an investment by running the numbers thoroughly and making sure that the house will rent for a good price upon us leaving. I will use the VA loan to purchase the property. Any advice?

[Kerry Baird]

The rent to value ratio is reasonable.  Don't forget property taxes and insurance.  

Here are a few thoughts from my experience:

We both wore combat boots, but we have only used one salary for the mortgage, just in case.  

Ask at the Housing Office to see, from their experience, what areas are in demand. Look to buy there. 

I like brick houses, because they don't need to be painted regularly.  I like houses with good bones and nice floor-plans, but outdated paint, fixtures, appliances, cabinets, etc.  An old hot water heater isn't going to cost you much, but an HVAC or a roof will.  A new coat of paint and improved landscaping does wonders.

As you grow, don't put all of your eggs in one basket.  We have a number of houses near a base in Texas, and a windstorm took down *all* of our fences.  Hail would do the same.  Now, we are spread out across a few markets.  Yes, all of our houses are near Air Force bases.  

Look for other industry growth.  Bases close.  

We saved our VA loans until house number 30. We were able to swing the rest of them without using the "easy" money.

Keep a nice sized emergency fund.  Stuff happens.  

I start with the housing allowance for an E-5 or E-6, and have that as my target rent. There is only one General or Colonel, and a bunch of E-3s. But, by E-5 folks have settled down a bit.