Your BAH Can Work for You!
Service members can use their Basic Allowance for Housing (BAH) to generate wealth through house hacking. House hacking works by buying a two-to-four unit property and renting out the other units you don’t live in. In this case, your mortgage is often covered or even exceeded by the money you make on the rentals. This method is also possible by renting bedrooms in a big, single-family home. Regardless, you can save your BAH for investing. Be sure to read all about the legalities here before deciding if this is right for you.
VA Loans for the Win
Another reason why house hacking is such a great plan is that with the VA Loan, you don’t have to pay a down payment on the house you buy. You can simply rent out the units to pay your mortgage and end up with a property you can eventually sell. That money you earn from selling it can then be used for whatever you want later on.
When buying a home, make sure it will make a good rental and a good investment long-term. So, it should be in a good school district and in an overall attractive location. However, avoid buying an overly fancy house to keep the mortgage low. This will allow for the highest quantity of possible renters. You can always update or add more units to increase the value later.
Want to Know More?
David Pere is an active-duty Marine who is on a mission to educate the military community about financial readiness. Most people hear that term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without a lot of effort. He teaches personal finance and real estate investing to service members to help increase savings and increase their chances of achieving financial freedom.
Want to learn more about Pere? Check out the Military to Millionaire website, and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Take a look at David’s book – The No B.S. Guide to Military Life here.
Looking for more ways you can be financially strong? Check out what’s new on our Mighty Money page.