As military families, moving is part of our DNA. Every few years, PCS (Permanent Change of Station) orders uproot our lives, sending us to new duty stations, new neighborhoods, and new schools. During my time in the Marine Corps, I saw these relocations as challenges instead of opportunities. Looking back, I realize I missed out on one of the biggest perks of military life: the ability to turn each move into a chance to build generational wealth.
If I had understood the power of real estate earlier in my career, my financial situation—and my family’s future—might look very different today. Now, I’m committed to sharing the insights I’ve gained from living the military lifestyle and becoming a Virginia Realtor, empowering others to take advantage of these opportunities and build generational wealth while serving.
Why Every PCS Offers a Hidden Wealth Opportunity
Relocating often feels like a hassle, but it’s also uniquely suited for building wealth. Here’s why:
- Frequent Moves Create Multiple Investment Opportunities: The average service member relocates every two to three years. That means over a 20-year career, you could move 7–10 times. Each PCS is a chance to invest in a property that could generate wealth through the Five Wealth Pillars of Real Estate.
- Appreciation: The value of the property increases over time due to market demand, inflation, or improvements made to the home. Selling at a higher price than the purchase amount provides gains.
- Equity Growth: As the mortgage reduces through mortgage payments your ownership stake increases. This equity can provide cash through refinancing or selling.
- Rental Cash Flow: Renting out the property can generate additional income, especially when rental earnings exceed expenses such as the mortgage, maintenance, and taxes.
- Depreciation: Owning a home provides tax deductions for mortgage interest, property taxes, and depreciation for investment properties. This reduces taxable income, indirectly boosting financial gains.
- Leverage: Using the home’s value to secure loans or investments provides additional financial opportunities. Equity-backed borrowing enables reinvestment into other wealth-building ventures.
- Appreciation: The value of the property increases over time due to market demand, inflation, or improvements made to the home. Selling at a higher price than the purchase amount provides gains.
- Maximizing Tax-Free Gains: The standard IRS 2-in-5 rule allows homeowners to exclude up to $250,000 in capital gains (or $500,000 for married couples) from taxes if they’ve lived in the home for at least two of the last five years. However, active-duty military members benefit from a unique provision that extends this timeframe during periods of “qualified official extended duty.” Essentially, service members can meet the 2-in-5 rule if they’ve lived in the home for two of the past 15 years. This means you can live in a house during a PCS cycle, rent it out for 12-13 years, and still sell it without paying taxes on most, if not all, of your profits.
- Access to the VA Loan: Obviously, the VA loan stands out as one of the most powerful financial benefits available to military members. It enables you to purchase a home with no down payment and offers highly competitive interest rates. Even better, the VA loan can be used multiple times, making it a key tool for building a real estate portfolio throughout your career. For example, in Virginia today, a VA loan for a $450,000 home comes with a 6.125% interest rate and approximately $14,500 in closing costs. Yes, what I’m telling you is that with $14,500 saved up, owning a home at your next duty station is all that it may take to start your path toward financial independence.
Lessons from My Own Journey
When I think about my PCS experiences early in my career, I see missed opportunities. At the time, my focus was on finding the easiest housing solution—renting or staying on base. I never considered how buying real estate could contribute to my family’s long-term financial health.
Here’s what I wish I had done:
- Bought property at every duty station in markets where it made sense. Military communities typically experience strong rental demand, driven by the constant flow of service members and their families seeking housing. By investing in these areas, I could have established a reliable income stream and increased my financial wellbeing through the Five Wealth Pillars of Real Estate.
- Leveraged house hacking strategies before I had kids. By buying a house and renting out spare bedrooms to fellow Marines, or living in part of a multi-unit property while renting out the rest, I could have significantly reduced my housing costs. These approaches would have drastically cut down on my living expenses and also allowed me to increase personal savings for my next investment property.
- Shopped around for lenders and grant programs. Instead of defaulting to the first mortgage option I found, I could have compared multiple lenders to uncover better loan programs, interest rates, and even grants. Military families often qualify for state and local homebuyer assistance programs, yet I never researched them. When I bought my first house, I made a major assumption after doing research online that the VA loan was my best option. But I later found out that, at the time, I could have qualified for a $20,000 grant as a first-time home buyer. That’s an immediate $20k boost in equity that I missed out on. Speaking with different lenders might have uncovered more creative options to maximize my loan benefits.
- Consulted a Certified Professional Accountant (CPA) on Tax Strategies. A CPA familiar with real estate investing could have helped me unlock tax-saving strategies, like maximizing deductions for mortgage interest, property management expenses, or depreciation on rental properties. By handling my own taxes with the free Military OneSource software, I overlooked numerous deductions that could have significantly reduced my tax burden.
- Educated myself through real estate resources like Combat Properties. I wish I had immersed myself in books, blogs, and podcasts about real estate investing early in my career. Gaining insights from experienced investors could have prepared me to navigate market trends, understand property valuation, and explore creative strategies like house hacking or BRRRR (Buy, Rehab, Rent, Refinance, Repeat).
- Utilizing or understanding refinance options. I made the mistake of selling one of my properties to buy my current home because I needed cash for the down payment. At the time, it felt like my only option, but now I know refinancing could’ve been a smarter move. If I’d tapped into the equity through a refinance, I might’ve kept that property as a rental and still covered the down payment for my new home. Selling it meant giving up potential long-term income and appreciation—something I regret, especially now that I see how much value I left behind.
Steps to Turn Your PCS Into a Wealth-Building Opportunity
To avoid the mistakes I made, here are practical steps you can take to turn each PCS into a stepping stone toward financial freedom:
- Do Your Homework Before You Move: Before you arrive at a new duty station, research the local real estate market. Ask questions like whether home values are increasing in the area and how the average cost of homes compares to rental rates. Online tools like Zillow and Realtor.com provide a great starting point, but working with a military-friendly realtor offers valuable local expertise you won’t find online.
- Think Like an Investor, Not Just a Homeowner. Look for homes that are likely to appreciate in value, can be rented out profitably when you PCS again, or offer house-hacking potential, such as a basement apartment, an accessible dwelling unit, or a multiplex. Viewing your home purchase as an investment rather than just a place to live can help you build long-term wealth and maximize your financial benefits.
- Build a Support Team: Partnering with the right professionals is essential. A military-friendly realtor can help you find properties that align with your financial goals, while a property manager can handle the day-to-day operations of rental properties when you move. As you live in the area, develop a list of reliable vendors that you trust to get the job done, ensuring a smoother experience when it’s time to transition to your next location.
Your Next PCS: The Start of Generational Wealth
Relocating doesn’t have to be just another box to check in your military career. With the right mindset and strategies, each PCS can be a stepping stone toward financial independence and a legacy of generational wealth.
Don’t wait to take action. Start planning your next move today by connecting with like-minded individuals. Make your PCS work for you—and for your family’s future. If you’d like to discuss your PCSing plan or need help finding a military-friendly realtor in your new area, feel free to fill out our contact form for a free consultation.
The entire reason I created Combat Properties is to share the lessons I wish I’d known earlier in my career. I want to help you make the most of every PCS and turn it into the start of generational wealth.