Becoming a Savvy Military Investor
You have a tremendous opportunity to build wealth during your time serving our country. In fact, you may be able to build a successful investment portfolio so your rental income becomes more than your military retirement income.
Servicemen and women can maximize the use of their VA eligibility to purchase houses at each duty station. Then, when transferring duty stations, you can rent out your now-investment property and let your renter build equity in the house as it appreciates in value over time.
What better place to start this smart strategy than San Antonio, a market that many investors around the world are trying to buy into?
Remember, you are running your own business when you own a rental property. Setting aside reserves for regular business expenses (maintenance, tenant turnover, etc.) and unexpected expenses is wise. Solid planning allows you to leverage your advantages to build wealth for you and your loved ones.
Being a Landlord and Your VA Eligibility
Depending on where you land when deploying, it may be possible to purchase another home with your VA eligibility while renting out your first home purchased with zero down and your eligibility. However, what happens when you’re ready to purchase your third home as a growing real estate investor?
It might be time to refinance your first home (now your first investment property). Since your housing allowance and renter’s payments have increased your home's equity over time, you may be able to refinance with a conventional mortgage and reaccess your VA eligibility.
The standard VA loan limit in 2023 is $726,200 for most U.S. counties, increasing from $647,200 in 2022. So, what would a second VA home purchase look like?
If your house in San Antonio was $320,000, zero down, you may be able to buy a house up to $406,000, also with zero down, at your next duty station. Then, if you land in a more expensive home market, you would need to do 25% down on the excess.
We highly recommend speaking to a knowledgeable loan officer to discuss your options. There are many qualified and experienced loan officers out there. However, some of our favorites are Madge Rochelle of Guild Mortgage, Keri Moss of Jefferson Bank, and Angel Ortiz of Cornerstone Home Lending.
Getting New Loans for Rentals
When applying for a new mortgage to purchase an investment property, your lender will want a copy of the lease. Lenders generally use 75% of your annual lease amount to count toward your debt-to-income ratio.
Although the lease may not be a positive cash flow in the lender’s calculations, it will partially offset the mortgage. Working with a knowledgeable lender to set your investment goals and budgets is key.
The MHN team is here to walk you through this process when considering a new mortgage for an investment property.
Professional Property Management
Suppose you decide that leveraging your benefits to increase your wealth over time is the best choice. However, when turning your home into a rental while deploying to a different location, you already have a lot you’re responsible for.
Our goal is to provide you with the best property management San Antonio offers, allowing you to decrease your liabilities and increase your profitability. With decades of experience, we strive to keep you informed about your investments and take steps to minimize your liabilities. Our objective is for you to experience the benefits of real estate investments while reducing the worry.
Let us help you as you protect us.
About Ret. Master Sgt. Keith Miller
Keith grew up as the 9th of 10 children on a farm in rural Arkansas. Not only did he learn about farming and farm equipment, but in the off-season, he built homes with his dad.
He’s proud that after 20 years serving our country, followed by building his own business, he was able to build a home with himself as the general contractor up at Canyon Lake. If you’re looking for a great weekend getaway, this gorgeous house will soon hit the short-term rental market!
Now he spends much of his time with his grandchildren and travels the world — this time for pleasure, not work.
About Military Brat Courtney Rosen
Courtney has embodied the saying "grow where they plant you."
As she started 9th grade, it was her 10th school. Her first career was as a secondary school teacher, and her classroom management skills have come in handy in running a property management company. It turns out that high expectations, clear communication, and factual information are great assets in both fields!
Courtney has taught three languages on three different continents (despite requiring speech therapy to master English and being dyslexic — hard work trumps excuses every day of the week)! She now hopes to continue learning through experiences and carry on the family tradition of home building with her own project in 2023.
Courtney also serves on the San Antonio Board of Realtors (SABOR) board of directors, represents landlord voices on San Antonio’s municipal government renter’s solutions committee, and is active in the political action and educational committees on the local and national levels for the National Association of Residential Property Managers (NARPM).
With much gratitude for our military personnel’s sacrifices, she hopes to help here on the homefront as much as she can.
