Advice needed, short term plan

7 Replies

In order for the advice needed, I need to tell you my situation..

I am a sea duty sailor, I work very long hours 4 a.m. - 6 p.m., I am usually stuck on the ship 1-2 nights a week, underway 1 week a month/7-8 months every year and a half.  It will only be like this for about 2 more years where I will eventually get off the ship.  I really wanted to get started in real estate investing, but uncomfortable in doing it in my area when I am leaving soon, and uncomfortable with investing out of state after strongly considering it.   

I have been aggressively saving money and I receive a decent bonus every January until I get out in 2020(not retire).  I have nearly perfect credit(796).  I have zero debt, unless you consider the house I bought in 2010.  $164,000 left on mortgage, houses similar to mine sell for around $180,000-$190,000(steady market) which I plan to sell and not rent when I leave.  

I will be leaving Virginia in the summer of 2016.  I will still be in the Navy, but I will have a much more predicable schedule and I have the chance to basically move anywhere in the United States.  Where I move next is where I want to invest and live for the "rest of my life."  

So for the advice needed, what can I do in the meantime?  I believe my savings needs to remain flexible for when I move.  Obviously I will continue to aggressively save money.   But cash just sitting in my savings isn't helping at all.  Should I aggressively pay down my current mortgage and net the profits for when I sell?  What are my other options?  

@Mark Maire  - Thanks for serving.

Sounds like you are doing some good things - credit and saving.  

Are you renting out your house now?  seems like this would be a good way to get started.

Why not rent your house when you leave?  Seems like a great way to get started.  Then pick up a duplex or quad at your next place?

I would save as much money as you can.  The successful investors I have come across are extremely frugal.  I wouldn't pay down your house.  If you have cash you can always pay it down.  But probably can't get it back out.

My currently house wouldn't cash flow for the price i bought it at.  I currently live in it, but if the market remains the same my mortgage would be down to $155,000.  Sell for 180-190k.  

Rent out part of your house?  Or rent it when you are out to sea?

Originally posted by @Kirk R. :

Rent out part of your house?  Or rent it when you are out to sea?

 Unfortunately, yet fortunately I am married and have 2 small children.  

I was thinking about working with a contractor or a real estate flipper learning rehab costs for some free or cheap labor(heavy lifting, writing letters, door hanger, etc.) for when I do move I can hit the ground running.

Originally posted by @Mark Maire :

I have zero debt, unless you consider the house I bought in 2010.  $164,000 left on mortgage....

  

 Haha!  Good one!  Yeah, I think I'd consider that.

Seriously, kudos to you for saving and not running up debt.  You don't say how much cash you have.  Since want you money to stay relatively liquid and you don't know where you'll end up (except presumably on the coast somewhere), I'd consider being a private lender--I'll give you 7%!--rather than just having the money sit in the bank.  And continue to get educated. 

Originally posted by @Larry T. :
Originally posted by @Mark Maire:

I have zero debt, unless you consider the house I bought in 2010.  $164,000 left on mortgage....

  

 Haha!  Good one!  Yeah, I think I'd consider that.

Seriously, kudos to you for saving and not running up debt.  You don't say how much cash you have.  Since want you money to stay relatively liquid and you don't know where you'll end up (except presumably on the coast somewhere), I'd consider being a private lender--I'll give you 7%!--rather than just having the money sit in the bank.  And continue to get educated. 

 I have a good amount for the average person, but not a lot when it comes to real estate.  Enough for a down payment + closing costs on a 100k house but not enough to buy outright.  I rather not get too specific how much money I have unless it was in a private session.  Also its changing every month and a bigger change every year.  Send me a PM if your serious, and to see what you have to offer.

@Mark Maire  


My first house sounds similar.  I was a little disappointed when I sold through realtor - 6%.  Plus closing costs. Plus taxes etc.  My equity was similar to yours - but I only walked away with $4k or $5k.  I wish I would have kept it.  The area I had it boomed.  But keeping wasn't an option. 

I wish I would have been set up better to hold on to the other 2 houses I have owned.  Once you end up having all fees and costs on the front and back.....I would have rather held on to them.

I would run the numbers on your current house as a rental to see if you could break even maybe.

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