E-5 Duplex

[trinity50]

Good afternoon all,

I’m currently an E-5 and starting to get BAH. I want to purchase a Duplex Triplex or quadplex somewhere in the 7-City’s VA, with the VA Home loan. I don’t want to further my Navy career and as such have 3yrs left on my 6yr contract. I want a house that will pay all of or a good chunk of my mortgage while I live in one half and rent the others. So when I EAOS back home I have a passive income stream and have the tenants pay off my mortgage then some. I have 0 debt and after bills pocket 75% of my paycheck. My question is what do I need to look for in a home, look for in a property management agency, what to expect and what to do as a new homeowner. All advice is welcomed and appreciated thank you in advance.

 

[patto]

@trinity50 Here are some questions you should ask yourself first. Are you financially ready to buy a house? How is yoir credit score and what kind of interest rate can you expect on a mortgage? Do you have a down payment? In addition to that, do you have cash reserves set aside for maintenance and repairs? Would you be able to comfortably pay the mortgage for several months if the other units were vacant for an extended period of time? Are you in a position to hold onto the house for a long period of time? Do you know how you would screen prospective tenants? Do you understand the responsibilities of being a landlord and are you ready to take on those responsibilities? What is your plan if problems come up while you are unavailable due to your military obligations?

Contrary to popular belief, renting a property is not "passive income". You have to do the work of selecting tenants, maintaining the property, dealing with tenant problems, collect the rent, etc. Real estate can be a good business if you treat it as such bit it takes more work than those promoting "passive real estate" on social media say it is.

 

[april303]

@trinity50 @patto offers great points and considerations. Are you single with no kids? If so, consider renting out all available rooms in your space (even if you get a multiplex). Overall, look for something with its own utilities. I have an inlaw type suite (efficiency?) on my house. I had one tenant asked me why the hot water always ran out... Holy f*&%!, she had her own 40 gallon water heater, which I pay for. Also, when the weather's great and I open the windows to save money... nope, the window shaker is on.