Military Real Estate Investment Moves
The military lifestyle presents many new and unique opportunities to one who is trying to have a home away from home. Typically people reside on the military installation they are stationed at, but more and more people are taking the opportunity to own their own home and build a life outside of the gates. Some shy away from this type of investment due to the unknown future and moves that happen, but there are options that allow for the service member to build a great financial portfolio with the help of a professional property management company.
The U.S. Military
The US Military has a fantastic program available that is backed by the VA. It allows soldiers to purchase homes that are completely financed with no money down. These programs are especially helpful for those who typically move every 3-5 years; they can have up to five VA-backed loans out at one time per service member. Regardless of whether you intend to have all five out at once, it does provide for a powerful way to get into the real estate investment market.
While in the service many folks find that they dabble in real estate without ever really having a huge interest in it. Having something to call home is a huge plus in the your world outside of the military. The American Dream is owning a home and it shouldn’t depend on your honorable career choice. The problem is that orders to move get cut with a report date as soon as 90 days away, and it can put the owner into the game of rent or sell with no time to think about it. The benefit to purchasing a home by a military base is knowing that military will be looking for a place to stay.
Basic Housing Allowance
Also, on your side is the fact that the military pays its members a Basic Housing Allowance, or BAH. This is a monthly allotment of tax free money for a residence of choice. If they live on base, every dollar of their BAH is used for the house they live in. If they choose to live off base, they can make some money by living in a house that rents for an amount under their BAH amount. If you know the type of people you want in your house – more senior ranking or below, you can gauge how to rent out your property and for what price. You can price your rent at just under a certain BAH level to attract those service members and help keep your unit rented longer.
Having properties in different areas can prove difficult, but can also bring into play the importance of partnering with a property manager to help you take care of the day-to-day needs. You are able to let go of the tenant needs and provide them a local contact to help in any situation that may occur, but still reap the benefits that are available to you as a property owner. Partnering with a company that has a long standing reputation in quality assurance is necessary as you will not be around to check in when you feel like it. The pennies on the dollar you end up paying can create an investment worth millions. Plus, with all the frequent moves that can happen, and the trainings that take you away from lines of communication, why not allow someone who is available 24/7 to take care of your home like it is their own.
Have An Investment Partner
Regardless if you are an intentional investor who is preparing for the day when you ETS (leave the military for good) and have a portfolio that is already working for you, or if you are the investor by chance, partnering with the right company can insure you are always in the right spot.