Primary Res Investment?

Question

Looking into best (not easiest), but profitable real estate investment to start with. Currently Active Duty family of five. Considering Primary Residence Investment property giving my family a roof over their heads with intent to invest in the property to rent or sell.
Any feedback from anyone who has found themselves juggling the decision on what investment would work best and not strain home life.

Nate Herndon · Answer

Hey @Tony Bryant Jr., I don't venture into the conventional lending space as a private lending broker but I have used my own VA loan twice now. Had we been able to do so, I would have held onto my first single family we bought ($150k purchase, owed $130k when we sold it).

That may kick the can down the road for you, but would not interrupt the home life by house hacking and living next door to your own tenants. Instead, maybe look at purchasing with the intent to hold it as a rental once you move to your next duty station. If you need to free up your VA loan for the next home purchase, you would simply look at refinancing into a conventional loan prior to your move or look at DSCR loans in the private lending space once the house is tenant-occupied.

Sean Hudgins · Answer

@Tony Bryant Jr., congrats on starting down the path. The first step is to get that BAH working for you instead of someone else. If you start looking at properties, look at them with the eye for will this house pay for itself when you move to the next duty station.

House hacking is tough with a larger family unless there is an abundance of small multifamily homes in your area.

If you are handy and can put some sweat equity into the home you buy, that can be just as powerful as house hacking. Look for a house that needs some simple updates.

-Kitchen Cabinets (can you keep them, paint them, and change hardware)

-Bathrooms ( can you replace a vanity or paint it and put a new countertop on it?)

-Flooring (can you replace the ugly carpet with LVP or a new carpet before you leave)

-layout (learn to look for walls that are likely not load-bearing and see if you can change the layout). Just be careful. This type of renovation requires permits and lots of extra steps and isn't always feasible.

I stumbled into my first investment because I bought a great starter home that just so happened to be a great rental. But you can bet every primary home I have purchased after I have planned from day one for that house to be a rental.

Tony Bryant Jr. · Answer

Greetings @Nate Herndon. I have heard this a time or two before I developed a passion for real estate. Thank you for your insight! I will be looking into the processes for refinancing from VA to conventional or DSCR loans.