Getting out of the military, Getting Started.

[Benjamin Fisher]

I am currently serving in Afghanistan on what I am hoping will be my last deployment. I plan on getting out late next year and I want to start to get my feet wet in real estate. I am stationed in So Cal and was super close to attending my first club meeting when I got the word I would be leaving for deployment eight months earlier than expected.
I am really wanting to get into real estate and real estate investing and have for quite some time. I have been moving around and all kinds of other things that have made it hard to try and put down roots and find a mentor and a group. I am contemplating whether or not I should stay in So Cal or move back to my home state of Florida.
On top of all that I am looking for a career that would compliment real estate investing. I have thought in terms of real estate agent, real estate lawyer, home inspector, etc. Basically looking to get full time into real estate and move into investing slowly but surely. My grand scheme if you will is a buy and hold, and build into a multifaceted real estate group way down the road.
If anyone has any tips or experience or any advice period, I would be more than grateful. I will be stepping out the military and taking my first baby steps toward one day being my own boss. Thank you in advance for anything you guys throw my way.

[Dustin O.]

Hello Benjamin,

I will take a shot at this for you; I am not an expert at all and have learned many lessons from reading forums and hard life lesson. I have been in the Army going on 18 years this August and I am currently deployed in Afghanistan. The VA loan program is the best tool to get started in Real-Estate for us vets. I am in Escrow right now for a house in Hawaii that should be complete this November.

I also have another VA loan in Arizona that was also a brand new home when I purchased it in 2006. All are buy and holds and will continued to be rented out. I will be using my BAH to cover the $2,400 mortgage in Hawaii and my entitlement is about $2,700. The house in Arizona was cover by my BAH until I moved, at that point I have rented it out and to this day I still have not put a dime into this house and I have owned it for 6 years. (Mortgage)

The house in Hawaii will bring in a $3,600 profit every year for the next 5 years while I am stationed in Hawaii. So my first 5 years of ownership I will make a profit of $18,000 in government allowances. I put $0 down and $3,000 in escrow which will be returned at closing. The house cost is $427,000 at 3.75% near Ewa Beach, desirable location, easy to rent, 3 beds, 3 baths, 2 car. I had my Realtor do a rental analysis for this current year and it will rent between $2,600-$2,900 a month with the option to use as a Vacation Rental during peak seasons if vacant. The $18,000 is a low ball because as you know we receive an inflation increase on BAH every January which is between 2%-4%. Along with an increased value of the property, even in this economy Hawaii has little suitable inventory at the $500,000 range or lower.

And yes you are allowed to have 2 open VA loans. For more information go to eBenifits.com and check your VA entitlements and eligibility. You must live in your property for 1 year before you move on and you must meet general loan qualification. My advice is to call USAA and use their home buyer program for the military because you also receive $1,500 after closing. I am making $10,000 at closing which I will use for future investments.

You also may purchase a duplex, not sure on four or higher. But I think you can, but you must meet guidelines. There are so many angles on VA and its uses. As a Soldier I travel all over the world and have become a custom to the AZ, AK, and HI markets. To use your VA multiple times you will have to build or purchase one in one of the following locations: CA, AK, HI, and NY, to maximize your Tier ll benefits.

There are few experts in this field so I would contact your local VA
representative for more information.
I learned on the fly which can be costly and cause many delays during closing. I plan on retiring in Hawaii so the scenario works for me.

Hope some of this helps, if not ask away.