Too early to get started?

Question

I am pleased to meet you all and look forward to starting on this journey.

I am a married 23 year old on active duty military with my contract expiring in two years.  I live in Southern Pennsylvania near the Maryland border and only a short drive from DC.  I want to start making moves but am hesitant due to uncertainty of where I will be living post-military.  Should I start now, should I wait to buy?

I have no debt, savings around 20,000 and growing.  My main interest is buying a multifamily and occupying it.

All and all, any advice about getting started specific to my situation would be appreciated!

Aaron Hale · Answer

Thank you for your service. I regret not starting my REI journey earlier while I was still active duty.I absolutely recommend getting started soon.

Let me ask you; Do you want to remain where you are currently stationed? Would you rather go back to your home of record or possibly your wife’s hometown? It really doen’t matter all that much except for that’s where you should start researching and building your network.

Right were you are is terrific just because you are located near a military installation. Off-post/base BAH is usually reserved for E-5 and above which will better ensure a respectful tenant. ...if not, you’ll have their CO’s contact info. BAH is a solid guarantee the service member is good for the rent and you can look up the exact rates any applicants will be getting online.

Whether or not you plan on staying where you are, you can purchase a 2-4 unit multi-family with your VA loan, 0 down and a very low interest rate. You and your wife could house hack, live in one unit and let the other tenants pay for your monthly mortgage and put some cash in your pocket.

Even if you do choose to move away or renew your contract and PCS, you now have time to start finding a good property manager to handle the day to day operation of the property. As your portfolio grows you may want to hire a PM anyways to free you up to continue finding more properties.

You have a lot of choices and a lot of studying ahead, but it’s all good stuff! Dig into the forums and keep asking questions. All the best!

Aaron

David Pere · Answer

@Brook Boatman You don't need to invest where you live, or live where you invest. Do some market research, find an area you like...then build a team, and start doing your homework! I buy in Missouri despite being stationed in Hawaii. I will end up in Missouri eventually, but not too soon. The point is, you need to learn, network, and take action...Where there's a will, there's a way!

Charles Kao · Answer

@Brook Boatman

Never too early to get started with your education.  I got a great real estate education from my parents and waited patiently for my time so the ability to execute was very high.  Make sure you have a high ability to execute via knowledge and or your team.  If you have a great team they will likely help you with both your knowledge and acquisition.

Felipe Pena-Diaz · Answer

@Brook Boatman.  Thank you for your service Brook.  My main piece of advice is to listen to the BiggerPockets podcast episodes.  Its VERY informative and great for a newbie with endless topics to choose from.

Ricardo Gomez · Answer

Hello Brook,

I don't believe you should wait, and just start taking action steps toward your goal. Get pre-approved, connect with a real estate agent to get access to the MLS. Start getting leads, analyze, and make offers. Best of luck.

Sincerely,

Jim Hogan · Answer

@Brook Boatman thanks for your service Brook.  If you are in southern pa I am assuming you are in Chester County.  I am in Chester County, Malvern to be exact.  Chester County has a VA in Coatesville and was doing a program with vets that needed apartments.  I have not gone down that path but it has been in the back of my mind. I went student housing path.  I still have left that option in my toolbox.  If you want to chat let me know.  I am a realtor and an investor. Would be glad to sit and talk.

Jeryes Freih · Answer

Again have to agree, I am fairly new myself but definitely start early. The best thing you can start doing immediately (which it seems like you are doing since you are here on biggerpockets) is get educated. Brandon says it all the time on the podcasts. Look for deals, analyze them, build your network but get educated. The more you learn before you jump in the less costly those lessons will be after you invest. I could go on forever; but finally, learn about money and how it works: specifically how financing and appraisals work.

JR T. · Answer

You  can buy now and when you are relocated lease out the whole place. That is how the vast majority of people wind up with rental property. They just keep their loan in place and put a tenant in there when they need to move.

Shiela Zhao · Answer

I agree with Alyssa, jump on the first great unit that comes along. Build your equity now.

Never put off to tomorrow what you can do today.

Alyssa Dyer · Answer

@Brook Boatman The earlier the better! The earlier you get in, the earlier you can have someone else start paying down your loan and building your equity. Just make sure to get a property that will make you money when you're renting both sides out!

Too early to get started?

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