soon to be homeless with 300K

19 Replies

Hi all BP members! With all the experienced pro's I was hoping for some input on my situation. I just recently lost my job after 9 years to downsizing, the company wants to do more with much less. I can't afford the mortgage on my house due to the lack of job opportunities in this area of florida. Once I sell my house and a few other things happen I should have roughly 300K at my disposal with zero debt however I still need a place to live. I definitely want to "house hack" however I want to do more than that. I am single and I don't have as much as a pet rock depending on me so however sad that is it does allow certain freedoms. I would prefer to live in Florida with all the other crazies but I can move anywhere. My handyman skills are decent and I have tools from a hammer to a tractor. I know if I find decent employment I should be able to build my rentals up within 2-3 years where I could quit giving my time to someone else but feel with right approach I could cut that timeline down considerably. I have had enough of working for someone else. I have spent years wanting to get into REI's and haven't taken the plunge and now is the time. Any and all input is appreciated.

This is an interesting predicament, and sounds like your sitting on some serious equity. Have you considered doing a refi while you have your w2 (makes it way easier) and lower that mortgage payment and possibly rent / Airbnb it out to cover your expenses. You can always BRRRR any property if you plan on living in it with only 3.5% down.

There are plenty of areas in Florida where $300k will work with house hacking and/or airbnb strategies will work.

I don't know how much houses cost where you are, but could you buy a duplex for $300K, live in one half and rent out rooms and then rent the other half?

Where in Central Florida are you, if you don't mind me asking?  300k will go a very long way in Spring Hill/ Brooksville, even at market rate, and there are places not too far from there that it will go even further.  Ocala is really nice if you like some space to spread out.  Lots of horse farms up there that are pretty inexpensive and have some nice acreage.

Your plan seems very doable. Just a tip getting loans will be difficult without any employment. You have endless options though. You can purchase a cheap SFH cash or multi and house hack. I would make sure to have plenty of reserves either way though.

Being without employment for a few years shouldn't be too much of a problem. Find a job you really enjoy and have some fun!

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@Bryan D. This sounds like the success stories we listen to on the BiggerPockets podcasts- people are almost living on the streets and then something happens that gears them into real estate and they become very successful. You have the capital, all you need now is the knowledge and action. Best wishes to you.

@Bryan D. I'd pay cash for a multi family property and house hack it. Then I'd pull out a heloc and buy more rentals. Obviously you'd need another W-2 to get the HELOC, but I'd cross that bridge later. Just pay cash for a Duplex/Triplex/Quad and live rent free. That's what I'd do anyway.

Your future looks bright if you handle this correctly. Losing that job might have been the best thing that’s ever happened to you. Sometimes people need a catastrophic event in their life to get their wheels turning. $300,000 deployed in a smart way can make you wealthier than any J-O-B in the long run. Good Luck!

Originally posted by @Account Closed :

You are insulting the TRUE homeless.    GIve your $300,000 to a charity then you may call yourself HOMELESS.

homeless

/ˈhəʊmlɪs/

Learn to pronounce adjective
  1. (of a person) without a home, and therefore typically living on the streets. Ones net worth has no bearing on whether you are HOMELESS or not.  I typically don’t get so upset about someone else’s opinion on here but you need to check yourself.   As far as what to do for the OP. You could sell your home before you are officially laid off and purchase a new home (four plex is my recommendation) and put the amount down to have zero housing costs.  Then start looking for a new job.  What’s your current profession?

Thanks for all the great input everyone. I have already separated from the company so no more W2. I am quite familiar with the Ocala area as it is about 20 minutes from me. My profession is plant operations and supervision (Homer Simpson-ish). Thanks for the back up Eric C from central Florida, out of my original question all that someone got from it was that I was insulting the homeless - WTH. 

@Account Closed ","user_avatar":{"medium":{"url":"https://biggerpockets.s3.amazonaws.com/assets/avatar/no_avatar.svg"}}}" href="/users/ModT1">@Account Closed ","user_avatar":{"medium":{"url":"https://biggerpockets.s3.amazonaws.com/assets/avatar/no_avatar.svg"}}}" href="/users/AdminT1">@Account Closed  I typically don't weigh in on comments that are not helpful to the OP but in this instance I find your post to be wildly insulting and unnecessary. This site is about a community that helps each other out, not calling each other out or in your case, making things up and being insulting. The OP never mentioned "homeless" so I don't even know where you came up with this ridiculous post. Bigger Pockets is better than this. I do not pay and renew my Pro membership to deal with hateful people that are looking to drag others down. Please find another community to harass.

@Bryan D. I would take this time to find a niche in real estate you like. Find a coach or mentor and just go full boar into real estate investing. You have a golden opportunity take advantage of it.

Originally posted by @Nathaniel Cherubini :

@Account Closed  I typically don't weigh in on comments that are not helpful to the OP but in this instance I find your post to be wildly insulting and unnecessary. This site is about a community that helps each other out, not calling each other out or in your case, making things up and being insulting. The OP never mentioned "homeless" so I don't even know where you came up with this ridiculous post. Bigger Pockets is better than this. I do not pay and renew my Pro membership to deal with hateful people that are looking to drag others down. Please find another community to harass.

The OP did refer to being homeless in the title of this forum post. Reading his post, the obvious context was homeless because he is selling his home and will not have one. I don't think there was any disrespect meant to homeless people. Responses on BP should be focused on the post topic and attempts to simply run people down are considered trolling which is not allowed. At the same time, BP is about healthy discussion which sometimes involves topics that cause disagreement however it should be done respectfully.

@Joe Splitrock Yeah I totally saw the post topic after I posted...the content of the post had nothing to do with homeless people and the comment made ridiculing him was very unnecessary which is all I was pointing out. I never weigh in on differences as that is just healthy dialogue when done with good intention...the post I am referring to was not debate or differing opinion, it was just trolling in my opinion.

Sorry for all of this as I hope everyone knows my original title was just to ensure that in response to my position everyone realized that I whatever move I do make has to include a place for me to live also (house hack). Thank you everyone for your support and I am searching diligently to try and find the best option. I appreciate all the feedback everyone has given me and certainly open for more.

Originally posted by @Bryan D. :

Sorry for all of this as I hope everyone knows my original title was just to ensure that in response to my position everyone realized that I whatever move I do make has to include a place for me to live also (house hack). Thank you everyone for your support and I am searching diligently to try and find the best option. I appreciate all the feedback everyone has given me and certainly open for more.

If you are laid off make sure to claim your unemployment benefits.  

Have you started applying to other jobs?  Start looking for a 4 plex.  You may be able to sell your place take the cash and buy a 2/3/4 unit and then use the money remaining to live until you get a job.  After you get a job take a cash out refinance out of your property and start building up your real estate empire.  

Good luck.  Hit me up.  I’m around to chat.   

ERIC C. I have started the claim process and that is quite the hassle. Still haven't received any benefit but it looks like everything is done on my end. Basically what you suggested has become my plan in a nutshell. Not knowing exactly where I will end end up adds some tings to the equation. Hoping to get the house on the market by the end of June if possible, until then i'm searching FB, realtor, CL and LoopNet for properties all around Florida which I love to shop properties anyway. Are you close to the Ocala area?

I am in Ocala and buy fixer uppers - just be sure the bones are good and they are in a decent neighborhood.  You might also look at buying a house that you can Airbnb a room or suite while looking for more rentals.  I bought one in the Lake Panasoffkee area that's 2 blocks from the lake and a boat rental/bait shop (working on other properties, so haven't had a chance to get started on rehab).  Something near the Villages would also work for you since so many people are coming here to look for properties in the Villages and Top of the World communities.

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