Military Real Estate Investor

[C.J. Baumann]

Hey Everyone,

I'm looking for anyone who has experience in doing real estate as a side job while in the active duty military.  My wife and I are newbies and have questions before moving forward (mostly around the topic of frequently relocating).  I envision accumulating rental properties on the side over the next 15-20yrs until retirement, but since active duty is often not in one place for more than 3yrs at a time, I am looking for someone to discuss the intimidations of "out of state" investing with.  Any and all feedback is appreciated... thank you!

Cheers, CJ

[Kerry Baird]

We started out by buying our first house in England, when we were posted there.  We lived in it while upgrading it, something we still do today.  We bought our first purposeful investments while back in Arizona for 4 years, and I started direct mail and doorknocking pre-foreclosures.  We bought a dozen houses while there, and then we were posted back to England.  Bought another home to improve while in the UK, and figured out how to buy houses back in the US while still in the UK.  Partnered with someone for a handful of houses near a school-house base in Texas.  Bought more rentals.  And now up to 31 or so total deals.  Some of those we fixed and flipped, some of those we rented out.  We still hold 12 long term rentals.  

Two things are key: an Enrolled Agent.  This is an IRS certified agent, who can stand in your stead should the IRS audit you.  "Excuse me, Mr IRS agent, I am in Qatar right now.  Go away." And the other needful thing is a good property manager, for when things go wrong.  They know the law, they screen the tenants, and they help you run your business in a profitable way.  

Everything else is down to saving.  We saved hostile fire, tax free, COLA, flight pay, family sep pay, and all the rest.  We bought houses with our tax returns from all that tax-free living.