Exiting The Military, VA Loan

[Luke Edwards]

 Hello Everyone!

My name is Luke and I’m currently in the USMC. I am going to be departing from the military in approx. a year and moving to Phoenix, AZ. I am looking for advice/constructive criticism on my current plan upon entering the civilian world.

Within my last 6 months of service I am going to be working on getting my realtor license so I have potential for a job once I leave the Corps. During that time period I plan to use a VA loan to purchase a 3bd home within Phoenix. One of my current USMC team mates will be moving in with me upon purchase and splitting all expenses. Then within a year another one of my guys will occupy the last bedroom. So essentially "House Hacking" the property.

My main goal is to start my real estate journey on the right foot and set myself up for success.

Other questions:

Is the Phoenix market too saturated due to the huge influx of people moving there? 

Am I going to be paying a premium because of it?

What would the benefit of putting any money down be if the VA loan allows me to put 0 down?

Thoughts on house hacking / living with friends?

Thank you for reading my post and helping me out.

V/R Luke Edwards

[Cade Olof]

Hello Luke,

It's cool to hear that you're wanting to invest in Real Estate. I applaud you for taking that step!

House hacking is where it's at! I think you should totally do it. As an agent myself, I can assure you that making money in this field requires a lot of effort and delayed gratification. Regarding @Mike Delprete point, it is a commission based position and so the first year or so feels like you're pushing a boulder up a hill. So the house hacking strategy is almost a must in order to keep your expenses low. 

Is the Phoenix market too saturated due to the huge influx of people moving there? I myself am not too familiar with the Phoenix market however I know it's extremely hot! I have many investor contacts there so I'd be happy to connect you with someone who better understands that market.

What would the benefit of putting any money down be if the VA loan allows me to put 0 down? I would recommend using the 0 down as that's the main benefit when utilizing a VA loan.

Thoughts on house hacking / living with friends? I myself rent to a couple of friends and some people frown upon it. However, I made it extremely clear to them on the front end of what I expect from them, and what they can expect from me as their landlord. Just be sure to set clear expectations so they know you have a business to run.

Feel free to reach out to me personally if you have any other questions or concerns! I wish you the best.

@Luke Edwards