All Forum Posts by: Ashton Cleveland

Bottom Line: If you're hosting on AirBnB then you're running a business and need to treat it like one!

I think a lot of the negative stigma that AirBnB gets is from travelers who stay with a host that has a "you are staying in my home" mentality. This is not rental property investing so much as it's buying a hospitality business.  

Following - I've also been looking for title companies used to performing off-market and seller finance deals in the area

For buy and holds or STRS: The hardest part is always the expected revenues. The expenses can usually be nailed down pretty tight - and if you budget for repairs and CapEx items then the unexpected is already accounted for.

So the biggest question left is expected revenue. You can use things like the BP Rent estimator or AirDnA for STRs to get you close - but it always requires a little more digging. You need to talk to Property Managers or find your own comps within the area. 

For value add (Flips/BRRRRs): Getting the rehab estimate right. You can do a lot of research and talk to multiple different contractors and end up with drastically different numbers each time. I think this takes the most experience and nailing down your systems to accurately forecast in the future. 

Also an overseas military investor - there’s some excellent advice from the guys above! In my short experience, I’d say being overseas only forces you to become better quicker. Being close to my properties would allow me to “cheat” on certain aspects and not maximize my systems and team-building to where it should really be as a professional investor. 

Hi Austen - also a military investor here. I think your desire to continue in Oregon is probably a safe bet. Salem specifically sees a lot of secondary benefits from Portland’s massive growth. The downside is definitely the state’s tenant-landlord laws. I invest in Washington where its similarly tenant-friendly. 

Having just gone through this process for the first time I have a few points that can hopefully help out:

• It costs nothing to get pre approved and just find out ahead of time what you are and aren’t approved for.
  
• Talk to multiple lenders. As a newbie, the financing is always the most confusing part. A great one will be happy to answer your questions and you’ll get an idea for which kind of lender is best in your situation.
• Having income certainly helps, but tons of people get financing without it. If you have a family member willing to co-sign, that can solve the problem for you as well.
• If you still BRRRR it right and for some reason you can't refinance on the back end, you should still be able to sell for a profit and walk away happy (although not ideal if BRRRR is the strategy you're going for)

Hope that helps just a bit! 

I grew up in Corvallis, OR and my wife in Vancouver, WA - and I happened to live in Texas for 4 years as well, so I at least have my perspective on living in both places to offer.

Not knowing exactly what your parents are into, I’ll offer my personal opinion. My wife and I can’t think of a better place to retire than Bend, OR. It has just about everything you have described earlier. In my mind it’s the epitome of a beautiful small town feel with everything to do. The one downside I would say is that everyone else has figured out it’s a great place to live too and prices are pretty high.

A somewhat similar town but in WA would be Spokane - and is much more affordable, however rising very quickly. 

Compared to Texas cities, Portland feels a lot more like a small town too with plenty of culture and things to do. Despite the downsides that have already been mentioned, I haven’t been to many towns in the US that have nearly as much character/beauty/friendliness/incredible food/outdoor activities/etc.

Good luck with the search and feel free to DM any questions!

Hi @Austin Cole - I’m an Air Force pilot and took out the Career Starter Loan when I arrived to SUPT with the exact same thing in mind and I don’t regret it at all. This was my thinking at the time:

• I would only use the loan for investment purposes. No Lt-mobile. 
• Since I knew the first couple years would be very busy in training (and I personally didn’t want to invest in the Columbus, MS market) - I would dollar cost average the money into the stock market (an S&P 500 index) as a place to park it and get a return while I waited to get into real estate. Here’s the risk involved with that:
  • If the market drops when you want to pull the money then you either accept the loss or are limited to using your own saved capital instead.
  • The money is slightly less accessible. 
  • You are assuming the market gets you at least a 2.99% return to cover the interest on the loan.

This is how its gone for me:

1. My wife and I now have 2 investment properties and I haven’t used a dime of the Starter loan. I’ve committed to putting half of each paycheck aside for investing since day 1 and it has allowed me to invest in these low-money-down deals without touching the original $25k. Saving capital will be even easier for you to accelerate being dual-mil.
2. I have been lucky and the stock market has really grown that $25k. At this point I don’t plan on ever pulling it back out. The basic question to ask yourself is, “do I believe I can get a greater return than 3% on this money?”

Other things I’ve heard from friends is using it to pay off loans with >3% interest rates or as a down payment for a house at their first assignment, with the latter being less common among those of us stationed at UPT bases or other short-assignments first. 

Something else to consider: in my experience you are going to have a hard time being so-easily granted $25k at 2.99% to do whatever you want with again, I recommend taking advantage of it before you’re outside the window.

I apologize for the long-winded answer. Bottom line: this loan is a great opportunity if you’re disciplined with it and have a plan.

If you’d like to chat about investing in the military, UPT or any other pilot-stuff please feel free to hit me up anytime! I’m still pretty new as well and learning as much as I can along side you.

Good luck in UPT! Study your a** off, and make sure you have fun along the way!

How to Win Friends and Influence People is one of the best mindset-shifting books I read early on

Hi @Brody Jett. I am also looking for a Real Estate CPA in Spokane - I wanted to revive this thread and see who you ended up going with and what your experience was if you don’t mind sharing - thanks!