New Air Force investor: where do I start?

Question

I know how commonplace this kind of post is, but I am here to reach out for anyone’s help on where to get started.

I’m avidly reading and listening to the podcast, so those habits are in place. However I do want to get active connecting with others and hear their personal experience, and I figured I would start here!

I’m 24, just recently got my first big-boy job that should cover my living expenses, and barely have anything in the bank. I want to start out by owning small multi-family’s and eventually owning large commercial buildings!

I’m here to find out how I can provide value, how I can serve my future tenants’ needs with top-notch housing and management, provide for my family’s future, and live free of the employer’s yoke!

If you are reading this, can you let me know how you got your first foothold in this industry? What’s a great way I can provide value or service to an established investor? Thank you!

Brendan Miller · Answer

Hi @Jonah Cervantes, congrats on the new job and taking the next steps to starting your real estate journey. I'd recommend taking advantage of the VA loans that you'll have access to. I believe you can get 0% down on properties (or very low down payments if 0% down is no longer available). I'd start with house hacking a small multifamily (2-4 units), live in one and rent out the other. I got started with buying a primary residence and then eventually renting it out after I upgraded, it's a good way to get started with someone that doesn't have much cash in the bank for a down payment.

Rich Carey · Answer

I invested successful in real estate my entire military career, mostly from overseas.  Now retired, I have a decent amount of paid off properties.   A lot of my content is tailored to military members doing real estate, which has its unique challenges and strategies.  I've been on biggerpockets podcast twice.  I'd recommend listening to the most recent one on Biggerpockets Money episode 156.

Jay Scott · Answer

@Jonah Cervantes

Zero down can work but you are going to be heavily leveraged so you have to buy right.

You should shoot for a price where you have 15-20% equity on day one.

If you're in a multi family, half of the units rent income should make the payment. If the payment is higher than that, you are going to struggle.

Buy local, you know the area and that's worth a lot. Buy direct and save the fees if you feel comfortable doing that.

Good luck.

Timothy Grant · Answer

@Jonah Cervantes, when it comes to VA loans remember that you can have more than one! There's a dollar cap but it's quite possible to have a VA loan at duty station A, and then another at duty station B, and so on. I think the current cap is in the neighborhood of 400K.

Kayla Givens · Answer

Hey, @Jonah Cervantes! Congrats and welcome to the wild world of real estate investing - I wish I had found real estate investing when I was your age! :)

Echoing @Brendan Miller - House Hacking is definitely one of the easiest ways to get your foot in the door. Buy a 2-4 unit property, live in one of the units, and rent the others. If multifamily is outside of your budget, you can always do rent by room strategy in a single-family home or look into a short-term rental strategy with something like Airbnb or VRBO.

If you are not eligible for a VA loan, you can go the FHA 3.5% down route or Conventional 3-5% down. The goal is to put as little money down as possible and after a year, do it again and move into your next house hack!

Jonah Cervantes · Answer

Thank you for the advice Kayla! House-hacking is definitely the plan going forward now.

Neil Rose · Answer

Hi Jonah. Thank you for your service!! Congrats on looking into investing and setting yourself up for a bright future.

The loans that will be available to you Should allow you to get your foot in the door. A duplex is a great option to start for a small house hack. My grandparents retired at 50 by owning duplexes while my grandfather served and paying them off over time.

Doug Spence · Answer

@Jonah Cervantes Welcome to Bigger Pockets and the awesomely-addicting world of real estate! There are lots of fellow military members who also invest in real estate on these forums and we all seek to provide value to eachother - so I think you will fit right in. Have you considered joining a mastermind group to surround yourself with like-minded investors?

I think you have the right mindset. Seeking first to provide value to others will take you a long way in real estate and in life. You probably know a lot more than you think you do about real estate, investing, and personal finance, so I challenge you to help others along their journey. The forums are a fantastic way to do that.

Send me a message if you ever want to connect and chat more about real estate. Best of luck and keep us updated on your journey.

Jonah Cervantes · Answer

Thank you! At the moment waiting to get my first assignment so I have no idea what market I’ll land in. I will remember the metric you provided.

Jonah Cervantes · Answer

Thank you Rich! I will be taking advantage of those resources.

New Air Force investor: where do I start?

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