Franklin Property: Targeting Military

[Cristian D. Ramirez]

Investment Info:

Single-family residence buy & hold investment in Clovis.

Purchase price: $127,000

I purchased the property with the sole intention to rent it out to military in a small military town. My strategy is simple, rent out to married military (preferably w/ kids) so they don't break lease if when deployed. Military members are less sensitive to market fluctuations and economic downturns, I can also reach our to their commander if they miss a payment.

What made you interested in investing in this type of deal?

I was 18 at the time and realized buying was much cheaper than renting. At that moment something clicked, I saw an arbitrage opportunity that allowed me to get into a house with little to nothing that would immediately start cash flowing

How did you find this deal and how did you negotiate it?

Using Zero down, negotiating to have seller pay for closing, and with a commission kick back for using a agent provided to me by USAA. In essence, I actually managed to make money buy purchasing the house. It rents out for 1150 w/ a monthly mortgage of 780/month.

How did you finance this deal?

VA Loan, I occupied the house for the first year while "house hacking" the two vacant rooms.

How did you add value to the deal?

Overtime I have made minor upgrades, New Appliances, Shed, Painted the entire house, New Toilets, Carpeting, etc.

What was the outcome?

5 years went by, same amazing tenant who never missed a payment.

Lessons learned? Challenges?

Have a separate bank account for the rental. Don't touch the money. Due-diligence via proper tenant screening in the front-end pays dividends for years. Get a good tax guy. Detach yourself from the emotional/psychological hurtle and trust the numbers

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

NO. I got a real estate license so I could avoid them.