First Rental Property

[Timothy Allen]

I am stationed in Norfolk Virginia and I want to start building up real estate.   I am only an E-4 in the Navy and I have a car payment along with a few other bills so I really do not have money to throw out. I’ve read posts, listened to podcasts, watched seminars, and read a few finance books but I am still afraid to get started. Even after the success stories I still fear I will crash and burn. Is there any advice on how to get past that fear and get started? Thanks,

Tim

[Cassi Justiz]

Hey @Timothy Allen, 

Congratulations on getting into BP and reaching out for advice. I would start by reading Scott Trench's book Set for Life. Save as much as you can to build up reserves, pay off debt as fast as you can and take full advantage of the cheapest living situation that you can. (On-base housing and food can suck, but it's way more affordable than the alternatives! Small sacrifices now will allow you to succeed later!)

Once you have some money saved up for a solid "emergency fund", look into house hacking your first property. You have access to an INCREDIBLE loan product called the VA loan. It's one of only a handful of loans that does not require a down payment and does not penalize you with mortgage insurance. Depending on your market, you may be able to find a small SFH and get roommates or you could get a multifamily property (duplex, tri or fourplex) and rent out each unit separately. If you can get your living expenses down, utilize your VA loan effectively and get an income producing primary residence, it's hard to go wrong!