Real Estate Investing School Podcast – Episode 209: Naval Officer’s Guide to Base Investments

Release Date: November 11, 2024
Host: Joe Jensen
Guest: Kelsey Ingalls, Active Duty Naval Officer

Introduction: Kelsey Ingalls' Real Estate Journey

In this insightful episode, Joe Jensen welcomes Kelsey Ingalls, an active duty naval officer from St. George, Utah, stationed in Virginia. Kelsey shares her inspiring journey of building a robust rental portfolio strategically located in naval hotspots. Her unique position as a military officer provides her with distinct advantages and challenges in the real estate investment landscape.

Early Inspirations and First Investment

Kelsey credits her father's advice, “they're not making any more land so buy it while you can” ([01:19]), as the catalyst for her real estate endeavors. Inspired by her family's long-held cabin property, she ventured into her first investment shortly after graduating from college. Moving to San Diego, she identified a lucrative opportunity to purchase a one-bedroom, one-bath condo. Evaluating the rental prices against her military income, Kelsey realized that investing in property allowed her to allocate funds towards a mortgage rather than paying rent, setting the foundation for her strategy to buy a house at every duty station.

Navigating the First Purchase: Challenges and Solutions

Purchasing her first property remotely was a nerve-wracking experience. Without the ability to visit the property in person, Kelsey relied on virtual tours and digital communications ([02:43]). During the financing process, she encountered a significant hurdle when Navy Federal unexpectedly withdrew her loan application just after she had placed an offer. Undeterred, Kelsey quickly reached out to Rocket Mortgage, which stepped in to secure her financing at a better rate ([05:59]).

This experience taught her the importance of perseverance and flexibility in the face of setbacks. As Kelsey states, “I’m not gonna stop until I pretty much exhausted all resources” ([06:59]).

Maximizing VA Loans and Strategic Financing

VA loans are a powerful tool for military personnel, offering benefits like no down payment and no PMI. However, Kelsey initially couldn't qualify for a VA loan because she hadn’t met the minimum active duty requirements. This limitation “left her under the old policy with an overall cap” ([08:20]). By refinancing her existing loans, she plans to unlock new opportunities under the updated VA loan guidelines, which allow for uncapped borrowing based on local market conditions ([08:50]).

Kelsey emphasizes the importance of shopping around for lenders, noting that while major lenders like Rocket Mortgage and Navy Federal offer standard processes, local lenders can provide a more personalized experience tailored to her unique needs as a military officer ([24:36]).

House Hacking and Scaling the Portfolio

Kelsey’s real estate strategy revolves around house hacking—purchasing multi-bedroom properties and renting out individual rooms. For example, her four-bedroom home in Colonial Beach, Virginia, generates significant rental income, allowing her to cover mortgage payments and potentially pocket additional profits ([07:12]). This approach not only maximizes her investment returns but also provides flexibility as she relocates.

With each new duty station, Kelsey aims to acquire properties that align with military hotspots, ensuring steady demand from fellow service members. Her current portfolio includes properties in Virginia, Newport, Rhode Island, and Corpus Christi, Texas, with plans to expand further as she receives new orders ([23:30]).

Overcoming Challenges: Roommates and Realtor Missteps

Kelsey candidly discusses the challenges of house hacking, particularly dealing with incompatible roommates. “House hacking can be really hard,” she admits ([32:28]), highlighting the importance of setting clear expectations and maintaining open communication to preserve both her investment and personal well-being.

Additionally, she recounts a near-miss with a realtor mishap during the Newport property purchase, where miscommunication almost jeopardized the closing process. Through swift action and reassurances, Kelsey ensured the deal proceeded smoothly, underscoring the significance of trusting one’s instincts and maintaining control over the transaction ([34:50]).

Strategic Advice and Best Practices

Kelsey shares several guiding principles that have been instrumental in her success:

1. Specific Time Management: By meticulously scheduling real estate tasks, Kelsey ensures consistent progress despite her demanding naval duties ([38:42]).
2. Budgeting and Financial Discipline: She emphasizes the importance of maintaining a strict budget to avoid unnecessary expenditures, especially during stressful periods ([38:42]).
3. Personal Touch in Transactions: Kelsey believes that adding a personal touch, such as handwritten letters to sellers, can make a significant difference in competitive markets. This approach helped her secure properties even when offering below the highest bid ([10:29]).

Joe echoes these sentiments, highlighting the value of resilience and proactive problem-solving in real estate investing. He cites a powerful quote shared by Kelsey: “Courage is not the absence of fear, it's action in the face of fear” ([18:31]).

Leveraging Networking and Resources

Kelsey recommends utilizing resources like BiggerPockets for both novice and seasoned investors. She praises the platform for its wealth of free information and community support, making it an essential tool for anyone looking to grow their real estate portfolio ([43:45]).

Final Insights and Encouragement

In the concluding segments, Kelsey encourages listeners to believe in themselves and pursue their real estate goals with determination. Her message, “believe in yourself and just go for it” ([45:18]), serves as a motivational takeaway for aspiring investors.

Conclusion: A Roadmap for Military Real Estate Investors

Kelsey Ingalls’ journey is a testament to the strategic advantages military personnel can leverage in real estate investing. From overcoming initial financing challenges to scaling a diverse portfolio across multiple duty stations, her experiences offer valuable lessons in resilience, strategic planning, and the importance of a personalized approach. This episode provides a comprehensive roadmap for naval officers and other military members looking to build wealth through real estate investments in base-centric locations.

Notable Quotes:

• Kelsey Ingalls ([01:19]): "They’re not making any more land so buy it while you can."
• Kelsey Ingalls ([06:59]): "I’m not gonna stop until I pretty much exhausted all resources."
• Joe Jensen ([18:31]): "Courage is not the absence of fear, it's action in the face of fear."
• Kelsey Ingalls ([45:18]): "Believe in yourself and just go for it."

For more insights and to follow Kelsey’s real estate journey, listeners can reach her via email at KelseyA.Ingles@gmail.com or connect on Instagram @kelsee.ingles.