New Military Investor - preparing for flip at next duty station

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New Military Investor - preparing for flip at next duty station

Henry White
Member since 2019 · 5 posts · 0 votes

Hey all, I’m a new investor looking to either buy and hold at my next duty station in Lawton, Oklahoma. I have executed one successful flip (blind luck) and am looking to expand my real estate portfolio. Anyone have any contacts in that area to help find a deal?

Few general questions I am trying to answer:

1) I love cash flow which is why I am more inclined to buy, rehab, and hold; but I am reluctant to hold after I move out of state after hearing horror stories on the BP forums. Any rule of thumb to follow to know when it is better to buy and sell rather than buy and hold?

2) Does anyone have any good planning tools to plan our rehab (timeline, costs, etc.) I hurt my profits from my last investment due to the lack of planning prior to closing? I have a carpentry background and do most of the work myself, thus keeping on track is crucial to maximizing returns.

Thanks!

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Adam Jaggers
Member since 2020 · 23 posts · 12 votes
5y

Hey Henry,

Fellow Vet investor here. I spent quite a bit of time in Lawton myself. Be warned, there are some extremely high crime areas there you should steer clear of.

I would start by investigation crime stats so you and identify and avoid those areas.

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  • Adam Jaggers
    Member since 2020 · 23 posts · 12 votes
    5y

    Hey Henry,

    Fellow Vet investor here. I spent quite a bit of time in Lawton myself. Be warned, there are some extremely high crime areas there you should steer clear of.

    I would start by investigation crime stats so you and identify and avoid those areas.

    1Reply
  • Abe DeHart
    Lawton, OK · Member since 2017 · 48 posts · 25 votes
    5y

    @Henry White - Welcome to Lawton. I have 40 rentals here. It’s a rough market, but there are opportunities. I completely agree with Adam’s statement. Happy to chat if that would be helpful. 

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  • Henry White
    OP
    Member since 2019 · 5 posts · 0 votes
    5y

    Thank you both for the feedback! I look forward to connecting in the future 

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  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Henry White -  Hey Henry.  We work with a ton of active military in our market.  We encourage them to keep cashflowing properties if the circumstances work.

    A couple things to keep in mind.

    1.) You're sunk if you can't get quality management in place before you leave.  You need their local expertise and connections to get the unit rented and repaired by quality people.

    2.) You need to make sure you're actually buying a good deal.  This doesn't always have to be something that's immediately cash-flowing, especially in a market with high appreciation.   Nothing you do will matter if you buy a bad deal in a bad market, or in a bad location in a good market.

    3.)  Learn the term "effective interest rate".  Yes, you're getting a 2.3% interest rate on your purchase, but this is over 30 years.  Do you know what that interest rate is if you sell in 3 years?  Closer to 95%.   If you're going to commit to buy and hold, then you need to be prepared to ride the highs and lows that come with real estate investing.  It's not easy.

    Good luck!

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