Megadeath,
Here is what I did ... when I started Active Duty (2003), I knew I was going to be stationed there (Charleston, SC) for 4 years, so right away got my Realtor's license. That way I could (1) look at properties after work on my own and had MLS access, (2) get a 3% commission when I bought, and (3) be a Realtor for friends at work.
Years ago in 2003, I made a long term plan to accumulate RE, and retire in 2021. My prior Reserve time points added up to about 2 years towards retirement, so 18 left.
So after I got the RE lisc., I went to work for Prudential part time and started looking for the most run down houses in good school districts / nice areas. I computed avg sales price/sq. ft, looked at historical appreciation, etc. Within a few months we bought a home (using VA loan), and moved in. We fixed it up and saved up money ... about 1 year later put 10% down and bought house #2 and fixed it up then rented out. We then took equity out of house #2, and about 6 months later bought house #3. Rinse/repeat (fix up, take out equity), and bought house #4. So its about time to PCS, so we sold house #1 (it appreciated nicely, and I wanted to free up VA loan), and paid off most of the equity loans on the others.
We moved to Phoenix, AZ and rented for a few month, and looked (through a Realtor, not with my license) and found a 2 bd / 1 ba with room to expand on the lot. We got permits from the city to expand it to a 3 bd / 2 ba, and subcontracted out the work. It was about $30k to add the room and bathroom. Once city approved it all, we took out the door connecting the two and drywalled over it ... so now its is a duplex We lived in the 2 bd / 1 ba, and rented out the 1/1 in back. This helped out for the mortgage.
Now a few more years, and its time to PCS again. We move to Monterey, CA in 2010, and rented (market was crashing at this time, but Monterey is still expensive). Hindsight I should have bought there ... but didn't. Anyway, I kept in touch with the realtor in Phoenix, and a great deal came up on a short sale. It was a 1800 sq ft 3/2 in a nice area and good school district, and the guy owed 220k on it. The realtor suggested putting in a bid for $60k ... I thought bank would never take it ... but we put in the offer and they did! We ended up taking out cash advances from credit cards ($50k), and $10k savings to buy it. Banks wouldn't not loan, since I had 4 mortgages already. That was 2011, and we have the same renter, and house is now $260k according to Zillow! So that's house #5
After Monterey, we moved to San Diego (again rented for 3 years). In 2015, we PCS'ed to Hawaii, rented for 1 year on military housing. After loving Hawaii and the lifestyle and weather here, we made the decision to retire here (still 5 more years left). We got a realtor, used the VA loan (high limit in Hawaii), and bought a 5 bd / 3 ba house in a really nice town and good school district (H.S. is best in the State). That was August 1st. House is set up as multi family, so 3/2 in front and 2/1 in back with separate kitchen, laundry, and entrance.
Once we moved in, we put up drywall between the two units where the door was, and rented out the back. We put for rent on a military site, and had 1500 views in a week! We had several people apply so had our choice ... and choose a dual military couple with a small baby. They pay $2100, which is about half the mortgage.
5 Year Plan is to payoff the 5 rentals (once one is paid off, snowball and roll that into the next one), and retire here. If we have to move (2 more years left on these orders), we will rent on the part of the house we live in now for 3 years, then move back here ... but hopefully can get follow on orders here in Hawaii.
From my calculations, in 5 years 5/6 houses are paid off, and I have $10,500 residual monthly income between rentals and O4 retirement, with a $4300 mortgage. That leaves $6k monthly for living, which is enough.
So my advice to you as a young Second LT ... think strategically and have a long term plan in place. Stick to it and you will get to where you want to go.
One more thing ... I prefer RE to the stock market as investments. You get tax benefits, such as depreciation, writeoffs of taxes, insurance, interest, repairs, travel to properties, etc. Tax benefits for me are about $500 or more every month. Stock market does not have tax benefits like this. ;-)
Regards,
EZ