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March 19, 2023 at 6:28 pm #80367Abigail
Initial thoughts on the scenario: mid 20’s, single, three paid off degrees in Food Science & Nutrition/Human Resources Management, paid off car with 100k miles/averaging 26mpg, debt free in all aspects, great credit, has been renting since the age of 18, saving 25% towards retirement, fully funded emergency fund, moving to the south (likely south GA/northwest FL area) but could be elsewhere, will receive free housing with the stipulation of paying for utilities/groceries the entirety of the stint, will be located around AF base area, has a startup salary of 40-50k, intending to move from the area in 5 years.
Would it make sense to purchase property with the sole intent of renting it to others, knowing it would likely be a flip/long term landlord situation down the road in the best case, but in the worst case having it available to live in personally should the free housing fall through?
What kind of concerns/questions would you be asking in this kind of situation? Obviously, this scenario is devoid of any real negative variables. Looking to bounce ideas and am wondering if this move would help propel my assets forward or be catastrophic to my portfolio.March 19, 2023 at 6:30 pm #80368Tom
I’ve heard that many in the military take advantage of their situation by buying houses and renting them when they are moved.
Being a landlord isn’t effortless, but there are a lot of benefits. I would probably do it if I were in your situation.March 19, 2023 at 6:31 pm #80369Christina
Landlording is not for everyone. Things are always good until they are not. I’d avoid being an out of state landlord. You don’t need to own RE to reach FIRE.
I also have a FS&T degree and a MBA in HR!March 19, 2023 at 6:31 pm #80370Matthew
I absolutely would not get into real estate with that income.. if you can’t save 25% AND cover that mortgage payment on your income, just don’t. Have you been working in field related to your degrees? 40-50k/yr with three degrees is honestly very low. Working on doubling that in the next couple years will be your best investment. That can come from coaching on the side or something similar.
If you aren’t careful, groceries and utilities can easily put you over $800/mo for two people, so absolutely control those expenses.March 19, 2023 at 6:31 pm #80371Sarah
Assuming you’re military, I’d also account for what the base housing looks like. For where we are located, base housing is a mess, so we opted for buying a house since we figured it was better for us financially to own than rent and would provide a better fit for the lifestyle we want. Yes, it’s important to think about finances, but we also prioritize quality of life. Our home isn’t the fanciest/nicest, but it’s modest and comfortable for what we wanted.March 19, 2023 at 6:31 pm #80372Tim
Buy a multifamily in a descent area after things cool off a bit & don’t look back. You are young enough to handle it, whether you rent 1 or both of multi.