Where should I begin?

Question

Hello everyone!

A little bit about myself: I am 24 years old and currently serving as an Active Duty Marine. I’m currently living in Los Angeles, Ca but was born and raised in Georgia. I am new to REI.

Starting with the things I do know, I have the big picture in mind. Ideally, I would like to start with house hacking on the East Coast in the next 2 years. I know that I would be there for 3 years and have time to start growing. After house hacking, I would later move on to buying and holding.

Since beginning my education phase a week ago, I have already learned a lot from the BP podcasts and forums. But the problem I am having is really figuring out where I should begin. Piecing together all of the little things. What should I learn first? What books should I read first? Who exactly should I build relationships with? What strategies are there? How do I analyze properties.... A multitude of questions I’m sure most of you had when first starting out.

I am excited to continue learning as I start my REI journey and look forward to meeting and potentially partnering with some of you in the future!

Lee Ripma · Answer

@Jamir Walton

Thank you for your service and congratulations on starting your education phase. I was where you are about 4 years ago and I was recently on the BP podcast, so you can learn a whole lot quickly. I think at first you just have to cast a wide net, interact on BP, read a few books, get around like-minded folks. So don't worry about what to do, or what to do first, just start educating yourself and the next right steps will present themselves.

Tyler Weaver · Answer

I would look into house hacking with a 4 family property using a VA loan. Getting as large of a property as you can. By this I mean buying a 200k property that brings in 2k/month vs a 600k property that brings in 6k. Since your out of pocket with the VA program is minimal, these properties will get you much better loan paydown over time. Also if rents go up 2% a year, would you rather your starting point of $500 a month or $1500? On a conventional loan with 20% down, these properties usually do not offer as good of a Cash on Cash return. With 0 down it can be much more attractive.

Rich Dad Poor Dad is a perennial favorite around here.

John Williams · Answer

Just sent you a PM with my contact info!

Looking forward to speaking with you!

-John

Joe Aiola · Answer

@Jamir Walton Congrats on getting started! Solid advice from @Lee Ripma as usual. When you're starting out, it's a smart idea to learn a little bit in each area of the business. There are several routes you can go, which are all talked about at length right here on BP. Once you do this and start to connect with people to hear their stories, you'll eventually start to narrow your focus on one strategy, one market, etc.

Focus on consistent action and making progress each day. The next steps will become more clear as you keep going.

Best of luck!

Jamir Walton · Answer

@Joe Aiola @Lee Ripma

Awesome, thank you for the advice and insight!

Layne T. · Answer

@Jamir WaltonThank you for your service!Echoing the others comments on VA Loan/Triplex or Fourplex route.Here's a simple roadmap for you:- Pick a market- Find a investor friendly real estate agent here for that market- Find a good property manager for that area from these forums (will be gold when you eventually move out of there)- When doing an home inspection, don't skimp - pay extra for the sewer line video scope (that repair is the most expensive nightmare that too many people skimp on), do a mold check, etc.Now with this stuff in mind, you don't need to ask "where do I start?"You can focus your questions into "how to pick the best agent/property manager," and some online searching will give you good info for that. In a nutshell, it's partial gut/who you click with, who'll help you learn the area and where to buy/not to buy, can help guide you and be a part of your team. Good luck!

Jamir Walton · Answer

@John Williams

Absolutely, it would be great to speak with you about how you got started whenever you have some time. What is the best way for me to reach you?

Tim Houzenga · Answer

@Jamir Walton

Hey brother thanks for your service.  Army vet here.  Got out in 2014.

Best bet would be a VA loan with 0% down on a triplex or fourplex if you intend to househack.  You do have to pay a funding fee, but that fee can be rolled into the loan.  So it’s pretty sweet.  Best place to start is figuring out your debt to income ratio and talking to numerous amounts of bankers to see what you qualify for.

Don’t make the same mistake I did and use the VA Loan for a house that does not make sense as a rental if you had to move.  That’s my biggest regret.

Good books to read are Millionare Real Estate Investor, Rich Dad Poor Dad, and the Book on Managing Rental Properties by Brandon Turner.

Jonathan Greene · Answer

You are getting very good advice here @Jamir Walton. I think you need to learn as much as you can to see how you want to start - that includes where you want to be, how you will finance, how you will find properties. There are a ton of meetups (online now) in LA where you can learn, but the BP podcasts are a gold mine for new investors, but with a caveat. Don't just listen to them all. When you are new, you want to tailor your listening experience to investors like you to start, ones about how they got started. There are a few with active duty military investors I'm sure and that's a great place to start and then you will begin to fine tune what you want out of it. Just don't rush into it since you have the time to learn.

John Williams · Answer

Hey Jamir,

I am actually in a very similar situation! I am 25 years old, active duty Army.

I got started a couple of years ago with house hacking. I think that is a great place to start! It's hard to go wrong when you have access to the VA Loan and can get in the door for $0 down! I'd be glad to share my experiences on house hacking with you!

I also buy-and-hold properties. One of my favorite books for getting started is the "Millionaire Real Estate Investor" by Gary Keller. I recommend checking out some out-of-state markets because it might be hard to find some great cashflow in southern California.

And lastly, don't hesitate to take action, don't overthink things! Sometimes new investors sit on the sidelines too long because they are unsure of themselves or they aren't confident in their numbers. Be conservative when estimating your numbers and then execute!

-John

Investor from Clarksville, TN

Where should I begin?

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