Hey Everyone!
I'm happy to be here and looking forward to connecting with many of you as I get started with my real estate investing journey. I'm also posting here for accountability of my actions. I really enjoy forums. Here is a little about me.
I'm a 7 year Coast Guard veteran. I was first stationed in Virginia and did 9 deployments all over the Caribbean, Gulf of Mexico, Atlantic, and Pacific on a 270' Cutter for 2.5 years doing drug and migrant interdiction. 6 months of aviation maintenance school followed and afterwards, I transferred to my first and final aviation unit in Cape Cod, MA on H60 Jayhawk Helicopters. I served a full tour there for 4 years. I separated from the military, took a 4 month break, built a completely custom motorcycle and then went to work temporarily as an automotive mechanic for a GM Chevrolet Cadillac dealership in my hometown. This lasted for 3 months until I quit due to poor working conditions and treatment. I couldn't find work again for another 2 months and ended up as a cook for a crabhouse for the next couple of months while I earned my Airframe and Powerplant (A&P) Certifications for aircraft maintenance. 1 year after separating from the military, I found my current career which I'm very happy and content with. I currently work on the UH-1N Huey Presidential / VIP Helicopter fleet outside of DC. I enjoy going to work everyday. I even have my name on the side of one of the helicopters! My total income including my Veterans Disability and my career is around 110k net after taxes.
I am unfortunately finalizing a divorce with a 3 year old daughter, and due to the income disparity between me and my soon to be ex-wife, child support is a little on the excessive side. Dave Ramsey said that you would continue to be broke until you've had your moment where you have JUST HAD IT with your current situation and debts. Child support was that moment for me. I was able to purchase a nice home and was living more than comfortably, with the ability to buy plenty of toys but the child support is putting me in a position where being house broke is just a bit too close for comfort. I don't need to sell anything, but finances are just a bit too tight for me so i've decided to put aside everything in my life and perform a HARD RESET. I have decided to start the process of selling the house in August after my soon-to-be ex-wife moves out, sell both my tesla and corvette, pay off any debts that I owe and put myself in a position to be completely debt free within the next few months. This is to reduce my debt-to-income ratio, and build my credit. I don't look at divorce or child support in a negative light. I look at it as the catalyst towards my future success due to the mindset it has put me in. I REFUSE to live house broke for the next 14 years living paycheck to paycheck. It's time to elevate my future. I am a very driven individual and typically don't stop striving for success and I keep pushing until I get what I want.
After becoming debt free and selling almost everything I have and have worked for I should have around 5-6k per month in liquid finances after child support and I want to use real estate investing as my investment vehicle. I plan on hitting it hard, but just need some guidance towards that first property. I have noticed that properties with more than 1 unit typically produce more cashflow, so here's what I have an interest in:
Mobile / Manufactured Homes - This would be a great way to get started as they are cheap and would get me started and some skin in the game. I could afford that first 20% down payment rather quickly if I pursue a loan through a bank.
Mobile Home parks - I would actually be interested in starting with an entire park, but need some clarification on how to even accomplish this goal as a first investment. This seems like this proverbial mountain that I would need to work up to first in stages of investing.
Duplexes, tri-plexes, and four-plexes - Purchasing these would net a higher return than single family homes if done right.
Apartment Complexes - I love the idea of multi-unit properties, as there will more than likely always be some kind of income being produced, even when some units may be empty.
Single Family Homes - I would be open to start with the purchase of a single family home.
My goal for any property I buy is to produce a minimum cash flow of around $300 a unit or more. If I buy a duplex, i would like to see a cash flow of around $600+.
My long term goal is probably the same as most - to escape the rat race and provide a comfortable life for myself and my daughter.
Just a couple of questions here and assuming my credit score is 720 and above:
1) Is it possible or even viable to purchase a mobile home park as a first property or should I look at starting small and figure everything out with a single family home? I'll be ready to invest here soon and I think the same amount of learning would be had regardless of what I decide to buy.
2) Typically when buying a home you will be living in you can only get approved for so much due to your income. Is there a cap of what you can be approved to finance when purchasing an investment property, provided all the numbers check out? For example: I found an 80 unit apartment complex for $4,000,000. After running the numbers, I would have a great cash flow and return on investment. Now, with my $110,000 net income I can't possibly fathom how a bank would put me on loan for $4,000,000 and seems like a monumental idea. My brain can't quite wrap my head around that. How would this work, and how could I finance something like this? Would the bank finance this and allow me to purchase this property based on the numbers and expected profit ONLY?
3) Secondary to the first question and I really want to get a concrete answer here which is why i'm pretty much asking the same question twice: Say I want to finance a single family home for long term rental income, on either a 15 year or 30 year loan. Will the bank be more willing to finance the property on a 30 year loan as opposed to a 15 year loan due to the amount of interest and income generated for the bank? Are they willing to finance this property solely on return on investment numbers and cashflow, or will they take my own personal income into consideration for investment properties.
Thanks for any and all help that you guys provide! I'm super happy to be here. I am looking for a battle buddy in the Maryland / Delaware area and would love to connect with like-minded individuals and put together a team.
