New Long Distance BRRRR investor and Veteran based in Houston, TX

[Justin Piche]

Hi Everyone!

A couple of months ago, my cousin introduced me to the Bigger Pockets Podcast. The first one I listened to was Episode 327 where Brandon and David talk about the BRRRR strategy. I was hooked. Every day while working out, walking the dog, or driving in the car I put on a new podcast and learn about the successes and failures of some incredible investors. I've finally decided to introduce myself on here to start building my network, see what value I can provide to others, and learn from everyone in this community!

Some background about me: I grew up in the Houston area, studied Chemical Engineering at LSU (Geaux Tigers!), joined the US Navy Submarine force back in 2010, had a GREAT time in the Navy but decided I needed to spend more time with my family. In 2017, my wife and I moved back to Houston to be near our parents and start a family. We were afforded an incredible opportunity to save while in the Navy, have been blessed with strong W-2 jobs for several years, and are in a good position to start buying houses, funding the rehab, and then financing the homes. We both currently maintain our W-2 jobs (not an insignificant feat with oil prices where they are) and have strong credit so I don't anticipate having a huge issue with financing.

Our goal is to OWN the property, rent to great people, and build wealth through equity. Cashflow is our secondary priority, in order to support one or both of us leaving the rat race, and appreciation is the lowest priority (we are not interested in buying in high appreciation and negative cashflow markets).

Our purpose is to free ourselves to raise our children and spend our prime years with family. There have been many people close to me that have worked so hard their entire lives, retired at 55-60 and then been struck with debilitating sickness that has completely altered their final years or ended them prematurely. I do not want to trade the prime years of my life for a salary that is contingent on me spending my time in an office away from those that I love. This pandemic has really made that idea clear in my mind because I have been able to spend an amazing amount of time with my daughter (18 months old now) by WFH and flexing my schedule. I am not willing to go back to an hour drive to work, a 9 hour work day, and an hour home.

I am currently looking for deals in the KC and OKC markets for a couple of reasons. Primarily, home prices in the Houston Market are high relative to the rent they can command. Property taxes are also significant here. Finally, a significant proportion of the economy is tied to energy - whose future is relatively uncertain right now. My understanding of the KC and OKC markets are that rent is closer to a 1% home value ratio, houses are generally less expensive to purchase in a safe working class neighborhood, labor costs are slightly lower as well - leading to less expensive (on average) rehabs, and the economy is more diverse.

I am building my team now - I am currently partnering with my cousin, Evan, who has solid Property Management and deal generation contacts in OKC. He is working for an incredibly successful investor vetting and putting offers on deals from motivated sellers, purchasing some properties, and wholesaling the rest. I am also working with another cousin in KC, Kinzie, who is a new Real Estate Agent with a lot of hustle. I would say I am closer to finding a deal in OKC due to the contacts.

My biggest weakness right now is estimating rehab costs. I have not started to reach out to lenders or contractors yet, but intend to very shortly as there may be a deal or two coming my way. To mitigate the weakness, I am reading the book on estimating rehab costs right now and just finished David's BRRRR book. I have also been considering using Rehab Estimator Pro to help generate a SOW and validate my initial estimations.

What I bring to the table: I have my own finances, access to private money lenders who believe in me, and an attorney (read: Father-in-law) in the family that wants to see me succeed.

What I am looking for: Connections, community, and advice. If you are familiar with the KC or OKC markets, are a veteran or Active duty military and want to share war stories or understand my own service and transition out of the armed forces, or in the Houston Heights area and want to make friends with a fellow investor and father of a toddler – hit me up! We can share a virtual beer or something.

I have a ton to learn, but I make sure to focus time every day on my own development (Mental, physical and spiritual). I want to meet people with similar goals and priorities to hold each other accountable and celebrate our success!

-Justin