Military Vet Investors: What's your strategy?

[Patrick Senas]

Hello BP and fellow vets,

So I have been trying to get a grasp of the SoCal real estate market and the best ways to invest. I was hoping I can ask my betters on this forum on how they have found success in RE. I want to focus mostly on investing. I already rent for dirt cheap and plan to stay (as long as my gf would let me live with her lol). So any property that I do buy, probably with VA or FHA, will be turned into a full rental after the owner occupied period has elapsed.

Local or OOS?

SoCal is a very expensive market with a lot of competition. I was hoping to invest locally so that I can use my VA loan and be able to manage it myself when I rent it out. Do you guys invest locally or OOS? If you invest OOS do you use turn key properties or create a team in those markets.

Whats your strategy?

If you do invest locally, what strategies have you found to be successful here? I was thinking of employing the BRRR method. I'm about to buy J. Scotts book on flips and estimating rehab costs to learn more about the process. Do you guys look for properties only where you can force appreciation? Or do you find rent ready properties?

Maybe you focus solely on flips or on wholesaling.

Financing the deal

They teach on BP to only consider properties that cash flow after expenses with 100% financing. I don't think that is possible, at least from the deals I've analyzed on the MLS. I directed this post mostly to vets because we have the option of using a 0 down loan (VA) without using creative financing. Do you utilize VA loans for investment properties or only on your "dream" home.

Investment Vehicles

I know this may be a preference but which niche is your favorite to invest in? Condos/Townhomes, MFR or SFR? I want to stick to MFR but those listed on the MLS are overpriced IMO.

Criteria

What do you look for in a property? What is a reasonable CAP rate, GRM, COC and IRR when analyzing a deal. Does your criteria change when you are using 20% down vs. 0% down?

Any inputs would be greatly appreciated. I have a basic idea on what I think I should do but would like some validation. Hopefully hearing your strategies will help solidify my own plans.

Thanks!

Pat

[Ben Biggs]

Hi @Patrick Senas first off, I'm a multi-family guy through and through. I have clients that are successful flippers/wholesalers but personally... not my boat. 

I purchased a turnkey duplex from Japan with my VA loan that I am currently house hacking, and have helped many people do the same.

First off - throw your bigger pockets spread sheets in the trash. They don't work here. 

Second - the VA loan is the best financial product on the market today and I highly recommend you use it.

Third - get super specific on your niche (I would pick SFR, or depending on your income a 2-4 unit) and focus on that until success, rinse. Wash. Repeat.

Fourth - just do a deal and get your feet wet

Fifth - yes there is ALOT of competition here (20,000 agents, investors EVERYWHERE) but with a rockstar agent who knows how to navigate that you can find success! 

Hope that helps!

-Ben