Conquering Real Estate Investing as a Military Spouse

🎶 “On the first day of lockdown Cindy brought to me, great advice on MILSpousing ” 🎶 I hope you sang the song in your head like I did. I wanted to share with my audience different perspectives of real estate investing and give people the opportunity to learn about it through a different voice. I hope you enjoy reading this series as much as I enjoyed writing it and getting to know these amazing women better.

Cindy Byler is the owner and founder of Passive Patriots, LLC. Cindy is the first woman I ever chatted with one on one about real estate investing. She is a military spouse so we had a lot to talk about. She gave me great perspective on how real estate investing can bring the sense of identity and purpose back into a milspouses work life. Life as a military spouse presents you with challenges that make you wonder what in the world you are doing with your life. Listening to Cindy explain her why and her story gave me so much more confidence in the decisions I have made thus far about my adventure in real estate investing.

Why did you start your real estate journey? 

I started my real estate journey because I needed a solution. As a military family, we have moved every two years on average. This has proven difficult to maintain my career as a music teacher every where we go. We once moved three times in three years. I had no choice but to put my career on the back burner. During that time as a stay at home mother, I became bitter. I had much to offer but our circumstances made it difficult to do so.

Since we went from two incomes to one and had about $60,000 in debt between student loans, our car, and paying for our wedding, I made it my mission to get our financial house in order. We followed the Dave Ramsey plan, made many sacrifices, and paid off all our debt in less than three years on my husband’s income. After saving our emergency fund, I was not very satisfied with Dave Ramsey’s investing advice. I chose to do research on investing and found the FIRE (Financial Independence Retire Early) community. I noticed a trend in that community: The majority of those who had accumulated wealth were often involved in real estate in some way. I wanted a piece of that pie!

It was shortly thereafter while reading Rich Dad Poor Dad that I realized the power of passive income. I had the epiphany that through buy and hold real estate, we could create passive income that could be collected, regardless of where the Army may send our family!

How did you get involved in real estate investing?

Upon moving to Fort Hood, TX in 2018, I accidentally landed a teaching job (they are so desperate for teachers)! With all the knowledge I accumulated the last three years, I knew I wanted to start investing in real estate. I told my husband since we were now debt free and did not need my salary, that I wanted to save 100% of my income and put it towards our first deal. He was on completely on board with that plan.

About 6 months of looking for deals in our hometown in Upstate, NY, we finally found a good potential deal! It was brought to us by our realtor, but it was an off-market deal. Off-market deals tend to firstly have less competition, but also likely to yield more profit. This deal involved a duplex and a triplex located next to each other. It was an unwanted inheritance, and we were happy to take it off their hands. Between our savings and some private money, we were able to purchase that deal in March of 2019. All units have since been significantly renovated and rented out.

What were some of your challenges in the beginning?

One of the first challenges quickly realized, was the importance of having someone you trust to walk the property for you. Since we are long-distance investors, we rarely have that luxury. We almost purchased a house with some “minor mold issues likely caused by being vacant for so long” as described by the realtors. After some investigative work I found that it was flooded and would have taken more money to renovate the property than it was worth! Thankfully, we were able to walk (RUN!) away from that deal with days to spare from being locked into our contract. Inspection clauses are a must-have!

Another challenge was finding a great property manager. This individual will make or break your business as a long-distance investor! Make sure to interview multiple property managers and learn the systems they have in place. Ask local realtors and tenants in the area who they would recommend. Word gets around and referrals (or lack thereof) are powerful.

Why did you choose the buy and hold strategy?

As mentioned above, we wanted passive income. Although managing the renovation process is not exactly “passive”, once completed and tenants are moved in, it becomes passive. Passive income simply means I do not have to physically work or exchange my time for money. And with a great property manager, this investment can be done anywhere!

How did you choose your market?

We chose our market based on where my husband and I are from. As high school sweethearts, we are fortunate to have all our family and resources in one place. We wanted to invest in a market where we could call upon people we could trust when needed. This strategy has proven to be quite helpful. My husband’s family members are also great contractors and we have hired them for many of our jobs.

One additional thing I would like to mention: Investing in your hometown is advantageous because it can become a tax write-off if you conduct business while home (consult your CPA, of course). We wrote off a trip home for a wedding because we happened to close on a house while there. This helps making trips home to visit family on our “vacations” a bit more justifiable. It also gives us something to do while everyone else continues to go to work as well.

What is your timeline for achieving financial freedom and what is your why behind it?

In the FIRE community, everyone has an “FI” number. We know our number, but we are not necessarily focused on that number. My husband will likely make the Army his career and do 20 years of service. Which leaves me about 11.5 years to hustle so when he is done, we can have a multitude of options. Maybe retire early, maybe take a sabbatical and travel the world, maybe continue working while traveling, who knows? But the goal is to have choices!

Speaking of choices, I was afforded the opportunity to take this year off from teaching to focus on our real estate business because in 18 short months, the rental income we’ve created has already replaced my teacher income. I will consider us “financially free” once my husband’s income is replaced too - even though we easily live on far less.

Our “why” is very much our children and their children, and their children. We want to create a legacy that will be multi-generational. So much so, that our great-great grandchildren will not only speak our names, but also know and practice our values. My husband and I both grew up knowing a level of survival we never want our children to experience. We look forward to providing them opportunity through not only finances, but through example as well.

What are your long-term investing goals?

At this time, we are looking to get involved in more passive investing. Specifically, multi-family syndications. Whether it be as a general partner or a limited partner, I am not sure. In the meantime, we will continue to grow our personal rental portfolio, network with other investors, and always keep learning. Always!

What was the greatest lesson you learned while investing in real estate?

The greatest lesson I have learned is the power of “paying it forward”. We find great satisfaction in buying rentals in our hometown, having the opportunity to solve problems by acquiring properties from distressed sellers, providing local individuals with consistent work, bringing life to dilapidated houses, and giving tenants a home they can be proud of. When your work is bigger than yourself, it can be SO rewarding!

What bit of advice do you have for newbies getting into real estate?

Never underestimate the power of education. Mistakes in real estate are expensive. Do yourself a favor and do your best to learn from others mistakes first. There are plenty of resources out there that it can be overwhelming and often contain conflicting information. I suggest finding a mentor in someone who is doing what you want to do. This will often require money, but do not be afraid to invest in yourself. This strategy is the most efficient and they can lead you to the best resources for learning.

One word of caution though: After learning the process, at some point you must apply what you have learned. Do not find yourself in paralysis by analysis. This requires honesty on your part. You want to learn to swim, but never actually get in the pool. You need to JUMP in! Mistakes are inevitable. They can and will happen. Money will be lost. But if you are intentional about taking time to reflect on that mistake, learn from it, never make it again, and “fail forward”, then that mistake is no longer an expense. It becomes an investment in yourself through experience.

One last thing (I promise)! Surround yourself with people who are also driven and doing what it is that you want to do. If you want to achieve great things, mediocre friends will not get you there. If you are the smartest person in the room, get a new room! Consider joining a Mastermind. Always be looking to enhance your circle of friends with people who will help serve you and vice versa.

As the saying goes: your network is your net worth! I was personally mindful of this concept in 2020 and I have grown far more than I could have ever imagined!