A Military Guide to Real Estate Investing and House Hacking

Investing in real estate can seem very intimidating for military members and families. Rental properties are not usually equipped to handle the short notice that many active members are accustomed to during their service, and on-base housing, while being more convenient, is more restricting in some areas. Buying a home frequently remains the best path for service members. What many military families don’t consider is how well suited their lifestyle and military benefits are to house hacking; that is, buying a home for themselves and leaving it behind as a rental when they move. 

One circumstance that is not often explored by military families but reaps incredible benefits is homeownership. Buying a home can be an excellent option to provide stability, flexibility, and profitable investment for your family. There are countless opportunities available to military families and active members to assist in this process, not to mention that your BAH can also be applied to your mortgage payments in many cases.

You can also receive government assistance when applying for loans or putting a down payment on a home in many situations.

VA loans are easily the best loan option on the market, current active duty members and military families have a huge financial advantage in being able to use this tool to start an investment portfolio. These loans are incredibly powerful with no down payment, competitive interest rates, and relaxed credit requirements. 

Perhaps the most significant benefit of VA loans is the ability to have multiple at the same time. VA loans are life-long benefits, and there is no limit to the number of loans members can have as long as there is remaining entitlement.

The military lifestyle’s short-term notice and constant moving can make homeownership a daunting endeavor. But investment strategies can allow military members and families to have a permanent home and create a passive stream of income simultaneously. “House Hacking” is a real estate investment strategy that allows members to buy a home for their personal use, then rent it out when they need to move. Part of what makes this such an incredible opportunity for active duty military and veterans is the ability to get owner-occupied terms on those initial loans, which carry over when you rent it out. There is no other option out there to buy an investment property with zero dollars down. Your return on your cash is literally infinite when this method is employed. 

With VA loans offering zero down payment, there is no risk for buyers in the market. These investors will get infinite returns in the shape of appreciation, equity, and all cash flow from renting out the property without the need to put any of their own cash in to the deal.

Whether you are choosing the best living situation for your family while on duty or looking to make highly profitable investments in real estate, these tips and resources will take you in the right direction. Boise TurnKey has several active duty military members on staff who have, and continue to use this exact investment method- we put our money where our mouth is and our team can walk you through the process step by step, having personal experience doing the same thing you are doing. As always, if you need any help finding the right investments, contact us here.