This as-told-to essay is based on a conversation with Erwin Jacob Miciano, a 27-year-old real-estate investor and the owner of Semi Homes in South El Monte, California. It has been edited for length and clarity.
I’m a dedicated dad, a committed husband, a real-estate investor, and the co-owner of Semi Homes, a real-estate company specializing in direct-to-seller transactions and marketing strategies. I co-own the company with my wife, Theressa.
I don’t have a college degree. I graduated from high school in 2015 and first worked at Wetzel’s Pretzels. I decided to join the Navy to support my family abroad in the Philippines and my mom and brother in the US.
In March 2016, after three months of boot camp, I completed the basic training to become a photojournalist. Until September 2021, I served as a mass communication specialist, with most of my overseas years based in Japan, stationed on the USS Ronald Reagan.
I separated from the military in 2021 to pursue real estate full-time
My Navy job included writing press releases, aerial photography, videography, and printing. In later years, I was stationed at the Naval Hospital Balboa in San Diego, where we covered COVID-19, and I was deployed with USNS Mercy to San Pedro in Los Angeles during the pandemic.
I was presented with an “early out” program because of overmanning in my job, and it allowed me to complete my contract a couple of years early. I had already started my business, but leaving the military allowed me to pursue it full-time.
I also wanted to spend more time with my young family. My eldest was born in January 2020.
My wife and I met on the day I arrived on the USS Ronald Reagan in 2016
We became friends through the first-response/firefighting team, where she worked as an electrician. We also noticed each other at church services, and she invited me to her baptism ceremony, where she was baptized inside an open jet fuel tank.
Early in our relationship, we lived together in a small Japanese apartment. Then, we spent about a year doing long-distance, with me still deploying on the carrier and her based in San Diego.
After a year of dating, we got married, and soon after some vacation in the US, we discovered we were expecting our first child. During most of her pregnancy, Theressa lived alone until I got stationed in San Diego around her seventh month.
That same year, I became deeply interested in personal finance and real-estate investing, inspired by stories of blue-collar workers achieving financial freedom through real estate. I learned the most from the BiggerPockets podcasts.
We were motivated to become first-time homebuyers
We were eager to apply what we had learned and planned to use the VA loan entitlement from our military service. VA entitlement is how much lenders can lend to a veteran or active duty member without providing a down payment.
We aimed to buy a multifamily property — ideally a duplex, triplex, or fourplex — so we could live in one unit and rent the others to offset our mortgage. Today, this strategy is known as house hacking.
Being stationed in San Diego gave us a few key advantages
The housing allowance we received as military members was higher than in most US locations, boosting our household income to about $10,000-$12,000 monthly. This allowance was discontinued once we both left the military. Theressa left the Navy almost a year before I did at the end of 2020.
Second, the VA loan allowed us to buy a multifamily property with zero down payment.
Third, we included 75% of the gross rental income from the property in our loan application, increasing our approved loan amount. On paper, our monthly gross increased to $15,000-$17,000.
Finally, new legislation removed local VA loan limits for first-time users, giving us more purchasing power.
After months of searching, we found a triplex listed for $1.2 million
We offered $1 million and settled at $1.1 million. By March 2020, we had moved into a three-bedroom unit while renting out the other two for about $4,000 a month, reducing our housing costs to less than what one-bedroom rentals were going for at the time. This was the start of Semi Homes.
After living in the triplex for two years, we moved in with my mom and brother in September 2021 in the San Gabriel Valley. The triplex is now fully a rental property generating $1,500 to $2,000 monthly profit.
My day-to-day work involves meeting with homeowners who are looking for support in selling their properties
We now buy properties and resell them for a profit. We also help sellers in deep foreclosure and save them from it. My role is to get my team in front of our target audience and guide clients through the entire process, all the way to the closing table.
There are also late-night administrative hours and business-building, which I work on three to four nights a week. The biggest change from my Navy days is that I’m no longer away from my family for long periods — a small freedom I cherish.
I feel both fulfilled and successful
While Semi Homes started as a way to build wealth and achieve financial freedom for my family, it’s grown into something more.
We stay in this tough business because we truly believe in the value we provide to the individuals we work with. I’m focused on building our online presence and spreading the word that foreclosing is not the only option.
I see myself in real estate for the rest of my life.
Want to share your story about getting on the property ladder? Email Lauryn Haas at lhaas@businessinsider.com.
The post My wife and I used our military benefits to buy a $1M property in San Diego. It kickstarted my real-estate business. appeared first on Business Insider.
