Dipping toes in the water - Air Force Investor in Ohio

Dipping toes in the water - Air Force Investor in Ohio

Investor · Wichita Falls, TX · Member since 2015 · 43 posts · 15 votes

Hey all, my name is Richard (my friends call me Dan). I am 26 years old and my wife and I have been blessed with a modest inheritance. We currently have the money invested in mutual funds and are getting modest returns. I believe that we have an opportunity here with our situation to really generate some long term wealth if we are smart about where we put our money. 

I'm currently in the early stages of feeling out the real estate field as I think this provides us the best chance to generate some relatively passive income and wealth as the market rebounds. I am in the Air Force, currently stationed in Ohio but moving to Texas (Wichita Falls) in March. I am looking at buying our next home, even though we will only live there for a little over a year - if I can find a good fixer upper that we can improve while we live there and rent it out, we can start our rental trail that is popular with many military families. Many people retire from the military with houses in several locations where they lived and then rented out instead of selling when they moved. 

I am also contemplating getting into mobile home purchasing or even a multifamily unit. We have family in Kansas City, so if we purchased a property there, it would be a nice tax benefit for when we travel to visit. We would also love to retire in Colorado Springs, so any property around there may be nice as well!

Any networking or friendly discussion is welcome - looking forward to being part of the community!

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New to Real Estate · Colorado Springs, CO · Member since 2015 · 125 posts · 86 votes
10y

Hey Richard! I'm a fellow military investor from Colorado Springs - I'd love to help answer any questions you might have!

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  • Colin SmithBusiness Member
    Realtor · Colorado Springs, CO · Member since 2013 · 989 posts · 447 votes
    10y

    I would be happy to talk about and answer any questions you may have about the Colorado Springs market. Just let me know what you would like to know!

  • Whole Saler · Kansas City, KS · Member since 2015 · 54 posts · 11 votes
    10y

    Hi Richard, welcome to BP. I'm a wholesale investor in Kansas City if I can help you in anyway feel free to message me or send me a colleague request or follow me. Hope you the best with your new adventure into real estate.

  • Investor · Colorado Springs , CO · Member since 2013 · 77 posts · 22 votes
    10y

    Richard,

    Congratulations on venturing into Real Estate. It is an unforgettable experience. My wife and I are very well educated and experienced in REI. She is a high caliber realtor and I am successful young investor. I can ensure the property you choose is a great investment by supporting analyzing it accordingly and she will guarantee in acquiring the best price and a seamless process. If interested, receiving a competitive advantage, let me know now.

  • New to Real Estate · Colorado Springs, CO · Member since 2015 · 125 posts · 86 votes
    10y

    Hey Richard! I'm a fellow military investor from Colorado Springs - I'd love to help answer any questions you might have!

  • Real Estate Investor · Mcallen, TX · Member since 2015 · 12 posts · 8 votes
    10y
    Congrats on taking the first step. I've actually owned rental properties in Wichita Falls. My business partner at the time, and still a very good buddy of mine owns 21 rental properties there and is a very down to earth and nice guy. His wife is also a realtor. They live in the Wichita Falls, and I know he's looking to unload a few properties. I'd be happy to give you his info. I know he'd be willing to share his knowledge with you. Good luck on your journey sir.
  • Gordon CuffePro Member
    Investor · Roseville, CA · Member since 2009 · 1k+ posts · 587 votes
    10y

    @Richard cook

    @Richard CookKansas City is a great market for cash flow. They have an active rei investors group also that you can check out an network with people there if you decide to invest in Kansas City. The Dayton market is also a good market for cash flow. You can see if they have an investors group on meetup com to join and learn. You can also make great contacts here on bp.

  • Kansas City, MO · Member since 2015 · 66 posts · 9 votes
    10y

    welcome

  • Homeowner · Fort Walton Beach, FL · Member since 2015 · 24 posts · 10 votes
    10y

    welcome to BP! I'm retired Air Force (out of Wright-Patt) and a newbie to RL. Feel free to hit me up and talk shop!

  • Rental Property Investor · Mineola, NY · Member since 2014 · 838 posts · 212 votes
    10y

    @Richard Cook Welcome to BiggerPockets!! I love to vision you have and wanting to build passive income and wealth. I would love to chat and see if I can point you in the right direction to accomplish the goals you want to hit.

  • Investor · Arlington, TX · Member since 2014 · 114 posts · 92 votes
    10y

    Hey Dan welcome to BP! You may already know this, but your VA loan will make things so much easier as far as financing so make sure you know how to use it. Also if you're stationed in Texas, you should look into owner occupied multi-families, because you can get it with no money down, live in it, and collect rent from the other units to offset or eliminate your mortgage payments, or even cash flow. It's a really nice position to be in. Being an AF vet myself, I'm becoming more and more educated in the matter (I'm a noob myself) and I'm very excited to begin. I hope everything goes well for you. Best of luck.

  • Investor · Colorado Springs, CO · Member since 2011 · 322 posts · 238 votes
    10y

    @Richard Cook

    Good luck to you both. I have had some REI success in Colorado Springs and would love to score at least one more deal before I have to leave here in FEB 2016. @Bryan Rodriguez and his wife are great folks to work with, if you are looking for an investment buy in the Springs I highly recommended them.

    Good Luck

  • Investor · Juneau, AK · Member since 2015 · 980 posts · 741 votes
    10y

    Welcome Richard. I have known a few military families who followed that strategy with some success (especially with appreciation over time). Mostly Coast Guard here, but I think the idea of living in and then renting out  when you move (probably with property manager) can be a successful strategy. Lots about the analyzing of properties, fixing them up, and renting them out here.. You came to the right place!

  • Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
    10y

    @Richard Cook, from one Active Duty USAF to another ...it can be done! Kansas City, Dayton & Witchita Falls are all great areas to start investing. I suggest using your VA loan on a multi family to get some landlord experience & the other renters basically pay your mortgage and you live rent free. Do that for the 1.5 yrs you live there and then when you move out you got a place ready for some renters & you can pocket the extra rental income. Use your time wisely to make needed repairs & improvements so that when you move there will be little issues.

    At that point you could refinance the property to a Conventional....then your VA loan is still available at your next location. Plus you have the FHA loan option too...

    Let me know if you have any questions.

  • Christina CareyPro Member
    Real Estate Broker · Dayton, OH · Member since 2010 · 245 posts · 186 votes
    10y

    @Richard Cook Hi Dan - welcome to BP. My husband, @Darrin Carey retired from Wright Patt a few years ago. We are both very active in the Dayton market, and we also have a local networking meetup once a month, and is attended by investors of all experience levels. @Mark Brauer attended the most recent one for the first time. Hope to see you both at the next one!

  • Chris DawsonPro Member
    Real Estate Broker / General Contractor / Property Manager · Kansas City, MO · Member since 2010 · 395 posts · 425 votes
    10y

    Welcome @Richard Cook!

    I'm here in Kansas City and would be happy to help you find investment property.  Let me know how I can be of service.

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    10y

    Welcome to the site @Richard Cook

    O-H-I-O

  • Centerville, OH · Member since 2015 · 10 posts · 9 votes
    10y

    Welcome to the site, @Richard Cook! I work on base at Wright-Patt as well (as a civilian), and I spent enlisted time when I was in the Air Force at Shepperd AFB out there in Wichita Falls. Good luck in starting your rental investing!  

  • Cincinnati, OH · Member since 2013 · 3 posts · 1 vote
    10y

    Congrats @Richard Cook! I am Real Estate Agent in Ohio. Don't hesitate to let me know if you need assistance in the Buckeye state.

  • John PowellPro Member
    Real Estate Agent · Kennesaw, GA · Member since 2015 · 308 posts · 153 votes
    10y

    Do it! @Brian C. is right look into multi family. From the perspective of a fellow AD AF investor with several rentals. Shepard is a huge training base so there are some unique demographics. I'd look for either something where the UPT pilots would want to live which would be high profit but also high turnover. The more stable option would be look at where the permanent party instructors would like to live these would be longer term stable tenants but profits would be much lower and I would think that there are not many multi families that would fit this. My guess is you might know exactly what UPT students want and may even know people to be your tenants. If it were me it would be a Nice 4plex where the all pilots want to live.

  • Real Estate Broker · Cleveland, OH · Member since 2015 · 451 posts · 313 votes
    10y

    Welcome to BP @Richard Cook! Best of luck with whatever you decide to do, Kathleen 

  • Investor · Wichita Falls, TX · Member since 2015 · 43 posts · 15 votes
    10y

    Wow amazing responses - thanks everyone for the encouragement! Lots of great ideas to sift through and evaluate, looking forward to implementing and investing! 

    @Kyle Leinart - sent you a PM

    @Michael Volek - that was something we were tossing around is if we should use our VA loan. Just started listening to podcast 103, not sure if the additional fee will work until I run the numbers but it would be a nice chance to take that down payment cash and put it into improvements!

    @Bryan C. and @John Powell - that'd be the best, it doesn't look like there's many multifamilies around SAFB so if anything we'd have to go for a 2-4plex or condo. Do you know if those are considered owner occupied if I bought the whole set of them for a condo? There are some areas where the permanent party would probably live (I'm assuming Maj - Lt Col) that are close to base and very nice houses, problem is think they're  a little more than we should attempt right now ($225k +) 

    Thanks to everyone else that commented and provided advice looking forward to networking!

    -Dan

  • Jill DeWitPro Member
    Investor · Scottsdale AZ · Member since 2015 · 1k+ posts · 423 votes
    10y

    @Richard Cook

    Congrats and glad you are here in BP! Great place to learn!

    An excellent way to learn about real estate is buying and selling undeveloped land. Incredible returns, no rehab needed, and you can buy/sell all over the country. Great way to learn how to create and close deals - and any budget can work!

    Hope that helps,

    Jill

  • Investor · Arlington, TX · Member since 2014 · 114 posts · 92 votes
    10y

    What fees do you speak of? If you're talking about rehab numbers, you might be able to roll them into the loan or go around it when using creative financing once you refi. Regardless there's so many options out there to choose from and you'll still make money provided you run the numbers. You could literally put the info out on BP and folks will flock to you and say if it's a good deal or not. And try not to worry too much about the $225k+ priced housing. From the research I've done, the overall cost of the property isn't as important as running the numbers. Yeah you need funds to begin, but if it cash flows after all expenses then it cash flows....if that's your thing. Keep researching, keep asking, and keep learning. You'll do good.

  • Investor · Arlington, TX · Member since 2014 · 114 posts · 92 votes
    10y

    Well, let me just add that the overall cost is very important, sorry I shouldn't have said it isn't, I just want you to understand that there's many options and you can pick the best depending on your financial situation. Hope that helps.

  • Investor · boxford, MA · Member since 2015 · 37 posts · 16 votes
    10y

    Hi @Richard Cook, welcome to BP and REI! I was active duty AF stationed in Co Springs and bought my first house on my first assignment there. That was 2007, so when we go reassigned a few years later, we held onto the house rather than sell it and bring 10K to closing... but its worked out really well as a rental since we had about ZERO dollars of our own cash in it with a VA loan.

    The thing you should know about Co Springs is that other than the military, there's really no strong industry or job growth, so you can't count on much appreciation happening with properties in my eyes. I expect the home we bought will hover around the $225k mark going up or down by 20% over the years with the cycles. If it ever goes much further up (or down) I'd really be surprised. But the key is it cost me nothing out of pocket, hasn't had any vacancy, and since it was a new spec home hasn't yet incurred too many capital costs, so we've had time to save up some money towards that when it occurs down the road.

    Wherever you choose to buy, make sure you take advantage of your VA loans! You may even want to search for foreclosed VA properties in the areas you mentioned to find even better deals. Or consider using an FHA loan on your first property/mulit-family, because you can't use that again once you have a few properties under your belt, but you could still use VA, and reuse when you move so long as you plan to owner occupy for one year.

    @Colin Smith and @Bryan Rodriguez, maybe you've had different experiences with more targeted and better analyzed investments in Co Springs, which is how I am looking at things these days. I probably would've never bought that first property if I know what I know now, but I'm still glad I became an "accidental" landlord and am learning more. I am thinking of investing in more properties in CSprings because the prices are much more attractive than in MA where I currently reside, but not sure I want to do so through my current property manager. Going to follow this topic to glean more of your advice about the area! 

    Also just wanted to say hello to @Brendan M., as its always nice to connect with other AF investors in the same areas. What part of town are you investing in?

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