Active Military trying to grow SFH portfolio

[Jeff Love]

Hey all, 

This is an introductory post. I'm Jeff, active military, as well as a husband and father. I'm looking to expand my SFH and Scale my portfolio throughout the remainder of my career to reach financial independence and to create some level of generational wealth for my children. Currently I only have 1 rental.

My goals for 2024 are to continue my education, and hire a CPA as I consider new ventures. I will accumulate rentals across the country as I progress which I could foresee being a little more challenging as I have to build new networks in each region.

I am Interested in networking with other military investors as well as reading the expertise from other long standing members within the group. 

[Henry Clark]

Your best bet is your own housing and using your Base Housing allowance.  Also use the tax free sales if 2 out of 5 years primary residence.  

US government pays for your house and the gains $250,000 single or $500,000 married.  

Even if you sale for a loss you can make money.

Keep scaling.

Example.  All depends on your family, base and your needs

Single or just married.  BAH say $15,000 per year.  Buy a trailer with the lot.  Clean up.  Landscape. Add a carport.   Or do nothing.  

Live there 2 years and sell for the same price or more.  You make $30,000 tax free.  No other investment will get you that with less risk.

Now start to scale.  Look for either the worst house in a great neighborhood, school district, resort area, etc.  Again do BAH.  Fix it up.  Sale for same price or more.  Sale with no taxes.  

Try to either get your RE license or sale thru an attorney to save on commissions.  We use Realtors always but I wouldn’t do on quick sales.

Once you have a big enough cash snowball, then either pick an area for permanent investments where you don’t use your BAH.

Then start all over with your BAH.  Another play is look for a property that has extra land you can subdivide and sale.  

Key is to use your BAH to make money but also have a secondary angle making money.  

My brother just made an offer in Italy.  He will make $150,000 using his BAH for the time he is there even if he sales for the purchase price.  But he bought a house with two full living quarters on two floors.  He can also make an additional $15,000 per year or more if he rents during the tourist season.  This is also a value add property and he will make money on the sale.

He did the trailer house step and got his $30,000 cash snowball to get him started.  You can always buy a second trailer if you max out and pay the first one off.   Depends on your family.  

Lots easier to manage the tenants, you, in the above scenarios.