Investing in Real Estate While Stationed Overseas

A Guide for Active Duty Military

by: Johnny Lynum, The Military CEO | REI Genius

Turning Your Deployment into Dollars 💼💸

Deployments and overseas assignments can feel like a whirlwind of change and challenge. Between adjusting to new environments and staying connected with loved ones back home, it's easy to overlook the financial opportunities right in front of you. But what if I told you that your time stationed abroad could be the perfect chance to start building wealth through real estate investing? 🏡✨

For many active duty military personnel, real estate investing might seem like a distant dream—something to consider after retirement or when you finally settle down stateside. However, with the right strategy, you can start building your portfolio now, even while stationed overseas. In fact, your unique position as a service member could give you an edge in the real estate market that civilians simply don't have. 🎖️💪

The Numbers Don't Lie: Real Estate as a Wealth-Building Tool 📊🏠

Real estate has long been a proven path to financial security, and the data backs it up. According to the National Association of Realtors (NAR), the median existing-home price for all housing types in July 2024 was $410,000, marking a 3.2% increase from the previous year. Even more striking, rental income has been rising steadily, with the latest U.S. Census Bureau data showing a 6.7% increase in median gross rents over the past year, now averaging $1,326 per month.

For those of us in the military, the numbers are even more compelling. According to the Department of Defense, nearly 40% of active duty members are homeowners. With the average military family moving every two to three years, many have turned these homes into rental properties, creating a stream of passive income that grows with each PCS move. 📈💰

Why Real Estate While Stationed Overseas? 🌍🔑

As an active duty service member stationed overseas, you may think that real estate investing is out of reach. But with today’s technology and a well-structured plan, you can effectively manage properties from anywhere in the world. Here are a few reasons why investing in real estate while stationed abroad makes sense:

1. VA Loan Benefits: Your VA loan benefits don’t disappear just because you’re overseas. You can still leverage your VA loan to purchase properties in the U.S. with no down payment, competitive interest rates, and no private mortgage insurance (PMI). This is a huge advantage that can help you get started without needing a large sum of money upfront. 🏦✅
2. Diverse Investment Locations: Being stationed overseas gives you the freedom to invest in real estate markets that offer the best returns, not just those near your current location. With careful research, you can find U.S. cities with strong rental demand, affordable prices, and high appreciation potential. 🌆📊
3. Steady Income: Investing in rental properties allows you to generate steady income, even while serving abroad. This income can help offset the costs of living overseas or provide additional savings for your future. 💵📈
4. Building Equity: Real estate is a long-term investment that builds equity over time. While you’re serving your country, your property back home is increasing in value, setting you up for financial security down the road. 🔑🏠

How to Get Started: A Step-by-Step Guide 🚀📋

1. Research the Right Market

Before diving into real estate, research is key. Look for U.S. cities that have a strong rental market, affordable home prices, and positive economic growth. Resources like Zillow, Realtor.com, and local government websites offer valuable data on housing trends and market conditions.

Some cities currently seeing strong growth include:

• San Antonio, TX: A military-friendly city with a median home price of $315,000 and a rental vacancy rate of just 5.2% (NAR, July 2024).
• Huntsville, AL: Known for its low cost of living and growing tech industry, with a median home price of $280,000 and rental yields averaging 7.5% (Zillow, June 2024).
• Virginia Beach, VA: A popular area for military personnel, boasting a median home price of $350,000 and a rental vacancy rate of 4.8% (Realtor.com, July 2024).

2. Secure Financing

If you haven’t already used your VA loan benefits, now’s the time. The VA loan is an incredible resource that allows you to purchase property with zero down payment and low-interest rates. Even if you’ve already used your VA loan entitlement, you may be eligible for additional entitlement, especially if you're purchasing a second property. 🏦✍️

3. Find a Reliable Property Manager

Managing a property from thousands of miles away requires a trustworthy property manager. Look for a property management company with experience handling rentals for military personnel. They should offer comprehensive services, including tenant screening, rent collection, maintenance, and regular property inspections. 🔧👷‍♂️

4. Set Up Online Management Tools

Take advantage of technology to stay connected with your investment. Online platforms like Cozy, Rentec Direct, and Buildium allow you to manage your property remotely. You can track rental payments, monitor maintenance requests, and even communicate with your property manager—all from your laptop or smartphone. 📱💻

5. Build Your Support Network

Networking is crucial in real estate, especially when you’re overseas. Connect with other military real estate investors through online forums, social media groups, or local military communities. These connections can offer valuable advice, share their experiences, and even partner on deals. 🤝💼

Your Deployment Can Be a Wealth-Building Opportunity 🌟🏆

Investing in real estate while stationed overseas may seem daunting at first, but with the right approach, it’s not only possible—it’s profitable. By leveraging your VA loan benefits, researching promising markets, and assembling a reliable team, you can start building a real estate portfolio that sets you up for long-term financial success.

Remember, your military service has already given you the discipline, leadership, and problem-solving skills needed to succeed in real estate. Now’s the time to use those skills to secure your financial future, no matter where in the world you’re stationed.

You’re already juggling so much—why not let your hard work also build something for your future? Start small. Research markets. Take advantage of your benefits. Imagine your deployment not just as duty—but as an investment in your legacy.