Serious question - Rent, or live in an RV?

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Michele Fischer

The car is new. Just got the tag about a week ago! I put $2,000 down on it. I don't even owe the first payment for another 2 weeks.

In terms of housing, I don't do apartments because I live in a college town and there's always partying students. I can get a single family home to myself in a professional setting for around $1,000 - $1,200/mo. That's pretty average across the board. For me to get a decent house in a safe neighborhood... $1,000/mo. Period.

If I rent a home, I'll be close to friends and family but an hour from work. If I buy a camper, I'll be the same distance from work, but also an hour from friends and family. I'm going to have to drive an hour for work either way but that's fine with me because bc I've done it so long. Like I said I live in a college town so all the higher paying jobs are a good 45 away.

I'm pretty much just tired of paying $1,200 a month on a home I'm renting. So it's either I deal with it or downgrade to a camper and hoard my money and build a house in a year.

Account Closed

San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes

9y

Why not buy some property then? My daughter for instance, can actually (and has) buy a property and pay less in payments than the same property would be for rent, and that's in the SF Bay Area.

You could also buy, then rent out rooms.

I completely understand not wanting roommates, though. That option was never something I'd consider for myself.

Or, maybe, buy a lot (land only property), and put your RV on it. Depending on the city/county, you can do this at least temporarily, while supposedly planning on building a home.

I see nothing wrong, though, with buying an RV if it gives you freedom. Plus, you can re-sell it if/when you want to. So, I see nothing wrong with doing that.

You'll find here, though, people who will want to help you build a real estate investment. Hence, the advice to buy property to put your RV on, or buy a house out of town that you can live in and maybe sell later for a profit, etc.

3 Reply

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Account Closed thanks for the advice, especially being so respectful in deliverance. My only concern with buying actual property right now is the fact of me being a contractor and the risk of being out of work for some reason. I was thinking of getting an RV just for 12 to 24 months, hoarding away a lot of money, reading all the books I can (I've read 30 so far this year), and starting a small business on the side of my job. I wanted to do a side business to see the way things work and learn from the mistakes and try to create a good system for future endeavors.

The thing is, I can do all of that while renting a home. It's just spending $1,200/mo... Plus utilities. I've been really dumb with my money before and the fact of paying $15k+ a year in rent that I'll never see again is a little sickening in a way.

I'm obviously leaning towards the RV situation. I could even stay in my parent's yard off to the corner. I just don't want to feel like I'm being dramatic with the situation I'm given since I'm a contractor and definitely not trying to stay in my current career forever.

Account Closed

San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes

9y

Originally posted by @Wayne Yates:

@Account Closed thanks for the advice, especially being so respectful in deliverance. My only concern with buying actual property right now is the fact of me being a contractor and the risk of being out of work for some reason. I was thinking of getting an RV just for 12 to 24 months, hoarding away a lot of money, reading all the books I can (I've read 30 so far this year), and starting a small business on the side of my job. I wanted to do a side business to see the way things work and learn from the mistakes and try to create a good system for future endeavors.

The thing is, I can do all of that while renting a home. It's just spending $1,200/mo... Plus utilities. I've been really dumb with my money before and the fact of paying $15k+ a year in rent that I'll never see again is a little sickening in a way.

I'm obviously leaning towards the RV situation. I could even stay in my parent's yard off to the corner. I just don't want to feel like I'm being dramatic with the situation I'm given since I'm a contractor and definitely not trying to stay in my current career forever.

It sounds smart money-wise. Especially, when you look at the fact that you can sell the RV later.

Ralph R.

Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes

9y

Wayne Yates Hey Wayne I lived in a tent yes I said TENT! For 2 years. An HR away from work at 8500 ft elevation in Colo. I moved out of the camper trailer for the tent because it was easier to heat with a wood stove than the camper with propane. ( metal walls) The tent was bigger too. 16x20. I'm suggesting a thing called a yurt. Google it. Very efficient structure. Better than my tent. Get rid of the car debt and all credit cards. Stop gratification spending and you will be amazed how fast you can put money away!! I did it at 50 years old. Eventually I put a small wooden structure (called it a storage shed on the permit) and lived in that. You need a dog for a companion tho. I finally moved off the property one day. I just decided to move back to civilization. That plus I was tired of dealing with a bear that was hanging around all the time. He broke into my car and made a heck of a mess out of it. Had to put up an electric fence to keep him out. Yes this is a no bull true story. After I moved out the bear broke into the cabin. Went right through the siding and CDX between the studs. 3 years (now I was 53) later I bought a 28 ft goose neck trailer again with the idea of living in it. Same thing too cold in the winter. I decided one day if I was going to freeze to death I was going to do it where I had always wanted to live. I moved to alaska sold the trailer (lost my butt) and rented out my SFR. Landed in anchorage with $100 dollars, a summer job and the dog. Mortgage was paid ahead a couple months on the SFR. That thing about bankrupted me before it was over. A year later I got the job I have now. That was 10 years ago. That dog was with me every step of the way until she passed a few years ago. She was my best friend no matter what. Get a dog and go after it buddy!! You will learn creative out of the box thinking, find out who you really are and NEVER regret it. RR

4 Reply

Neal Collins

Developer · Portland, OR · Member since 2014 · 732 posts · 490 votes

9y

If you buy a house and get roommates at least you'll at least have rents coming in. It's pretty basic, spend your money on things that will produce cash flow. I'd rather rent a nice 3 bedroom house in town and get two roommates than buy an RV to put on my parents lawn an hour outside of town.

Also, just because you live in a college town doesn't mean all apartments are going to be noisy.

7 Reply

Jill F.

Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes

9y

I live on a sailboat half the year and my mother lives in an RV resort. Living on a sailboat or in a camper can have some issues you won't find in a traditional house-- your "plumbing" situation is not going to be as seamless as what you are use to in a house or apartment... you'll have to deal with holding tanks and sewage treatment and disposal, macerators break all the damn time, 6 gallon hot water heaters, filling water tanks, space is small inside (and often outside), insulation is usually non existent. In addition, nicer campgrounds can be expensive and you won't always get the money you put into an RV or camper out of it when you go to sell.

Unless your parents have facilities for dumping black and grey waste, and convenient, more or less permanent power hookups (at least 50 amps) you will likely end up at a campground paying some rent. So you'll want to check into local rates and figure not just the cost of the camper but the cost of campground rent.

Having said all that, there are some advantages to living in campgrounds and marinas: it's easier to make friends in a transient community, some have resort quality amenities, if you don't like your neighbors or if you run out of work, you can pick up and move your house, and it can be a comfortable, less expensive way to travel... I love the lifestyle and look forward to moving to our floating home each year.

You might want to rent an RV and spend a month living in it before you make a purchase decision just to see if the lifestyle is for you.

2 Reply

Account Closed

Johnson City, TN · Member since 2014 · 586 posts · 705 votes

9y

Why do you need to ask us? At this point you have no one to answer to but yourself. Do what makes YOU happy.

2 Reply

Ken Vingua

Oceanside, CA · Member since 2016 · 35 posts · 30 votes

9y

I have temporarily lived in an RV with my wife, 2 kids, a cat and a dog. I think you could manage it just fine but I think you are missing some RV considerations. If you are planning on just parking it on some open land than you will be "dry camping" the entire time. You would have to make trips for water, to dump your sewage (probably at a cost), and will need to run your generator for power. That is not the ideal permanent RV situation. You could easily pick up a good used RV with a payment under $200 per month and look at local RV parks and mobile home parks that have vacant lots for monthly rentals. That could be only a few hundred dollars and provide you all the utilities and keep you closer to town. Could cut your costs in half, keep you near civilization/family, and in the end you still have a sweet RV for future use. Hope to see you out on the road.

@Ralph R. Loved the story.

Ralph R.

Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes

9y

@Ken Vingua @Wayne Yates Ken good point about the "Dry camping" I forgot about the hoboing water in 5 gal jugs, hauling it in a 400 gal tank with a pickup truck, and having a 60 gal water tank inside the tent so I could thaw it out in the winter. I had an out house with a port a potty that I could remove the tank and dump in a roadside toilet on the way to work. yes I had power, a solar charger for a 12 volt car battery that I used to charge my phone and run 12 volt rv lights. a generator later on. I have fond memories of those days and it was the beginning of where I am today. it did have its draw backs tho. The trailers and RV's don't have adequate insulation, and just aren't designed for Colorado winters at least not long term use. The tent was far better. it was on a platform I built on post and pillars so it had a wooden floor. RR

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Neal Collins I understand the basics, I just can't get financially approved for a mortgage right now. If I could, I'd probably buy a duplex and live rent free for a year, move out, then rent out both sides and repeat since I'm in a college town. And I've been to almost all the apartment complexes in our area, it's a 12 mile radius in our city and we have almost 30,000 college students so every complex has the noise issues. Even if it weren't a problem, I'd prefer a single family for myself. Thanks for your input though, it's in the general vicinity of what I'd expect most people to say! Haha.

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Ralph R. all seriousness, you should write a book. Not even kidding. Thanks for your input!

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Account Closed just curious as to if it's a drastic decision or not. Seems kind of logical for me to live in an RV for a year, hoard away money and truly educate myself, get my real estate license (I'm 60% done with my course now), and then have a tangible item I can resell or keep after it's all said and done versus throwing away money in rent. Just wanted some more professional opinions, I'm only 24 and feel like it's better to do this kind of thing young, but would hate to get myself in a predicament. Like the RV not selling, etc. I was gonna see about getting my own land too or if that was too much, etc etc. Just wanted some other views to see past my own is all

Ralph R.

Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes

9y

@Wayne Yates yeah probably so! that doesn't even start to compare to life in Alaska! I have met and worked with a Pinkerton a descendant of the famous pinkerton agency, and at the same place I worked with a Hatfield a descendant of the famous Hatfield/McCoy fued, She told me the story long before it came out on the history channel. been on tv in a show by Andrew Zimmerman the guy who eats weird food. we made moose head cheese for him, I work at the airport where the show flying wild Alaska was centered, cut up a moose on camera for them. I know many "Bush pilots," I have taken 260 mile boat trips, 300 mile snow machine trips, camped on the Yukon River at -30 below zero, goose hunted from a SNOWMOBILE in may with no snow on the ground, cought 50LB king salmon in a net, excess of 50 whitefish in a net at one time and caught 6lb trout on rod and reel. I have put $800 dollars worth of fuel in a boat and burned it in one day and on and on and on! oh yeah I even worked for a place that did ice road trucking with 18 wheel trucks on the Kuskoquim river. the same company ran a barge in the summer. I worked on that too. And all of this after the age of 52. Never ever think life is over at 50 that's when mine began! Ive been to Thailand 3 or 4 times, Cambodia and seen the comaian temples, bought and given away several pictures painted by Elephants, got in a water fight in a Thai bar during the Thai water fest a few years back. it was the Thai's (about 200 of them) against the Alaskans (both of us) Nobody got hurt, its completely acceptable and part of their "water fest" celebration. My fear now is that I will be bored to tears when I return to the lower 48. Im 63 this October and torn between staying and retiring to the lower 48. life is easier there. water here is $150 dollars a month (for 1,200 gals), gas is $4.99 a gallon down from $6.00, milk $8.99 a gal. There aren't enough rentals in the USA to support a retirement here much less buy boat gas! LOL RR

2 Reply

Shaun R.

Real Estate Agent · Denham Springs, LA · Member since 2017 · 226 posts · 159 votes

9y

I'm married with two small kids and I tried to talk my wife into moving in to a camper just to drastically cut living expenses for a while. I couldn't get her to go for it, but I'd do it in a heartbeat if I could convince her. However, the only reason I'd be willing to live in that scenario is to achieve a specific goal quickly, which for me is to buy my first investment property quicker. I'd love to rent my current house out, move into a camper, and save for the next rental.

Seth Hobbs

Investor · Houston, TX · Member since 2016 · 54 posts · 25 votes

9y

@Michele Fischer If you are planning on staying single and not starting a family - go with the RV. Keep it simple you don't need to spend a ton of money on it. But in 2 years you would have your money back and more. Keep paying the car down accordingly and pack away the cash so you can start building your real estate portfolio. The great thing about the RV is that you can pick up and go anywhere. I actually like that idea.

Patrick LiskaPro Member

Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes

9y

Wayne,

Why not manage a property in the mean time? find a complex that is looking for a property manager, sometimes housing is included with their position, you will get hands on experience with managing properties and have a place to live. being a contractor will be a big plus for that position.

3 Reply

Jean BolgerPro Member

Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes

9y

Hi @Wayne Yates
I love the idea myself. You are young, but you're thinking outside the box, and it's that kind of thinking that will enable you to become a successful investor.
I'd also check out this blog, if you're not already familiar with it:
http://www.mrmoneymustache.com/

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Ralph R. that's insanely interesting, really. You should get with a publisher on it and write a book because I seriously would buy it!

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Shaun R. that's the EXACT reason why I would want to do it. Just to drastically cut expenses for a year. I can save a lot of money, read a ton of books, continue to build my credit, get my RE license, etc. It's just hard to be 24 years old making almost $5k a month and imagine living in a 30 foot space. I live in an apartment now with super nice furniture (seriously, my couches are electric and my bed is too), a 50 and 60" tv, electronics, etc. It's going to be a little odd to get rid of it all. I think it'll be best though because I'm starting a small side business and can use my room at my parents for work space

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Seth Hobbs I appreciate the input bud, the only reason I ended up financing a car was because I drive about 3k miles a month for work. It's in a major city and I'm a little too country to make the move and being around that many people 24/7. I like my seclusion. And I JUST turned 24. I can start a family and all in the future but even if I were renting a super nice family home, I would stay single until I'm financially stable enough from my own business, so I don't plan on anything serious for a while regardless

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Patrick Liska I currently have too much work going on. I know that sounds cliche, but I literally only have 2 hours of free time during my work days, and I spend about an hour and a half of that showering and cooking lunch for work. I wake up at noon (night shift) and get home at 3am. Wake up at 11am. After I have a hefty savings though I'll probably do something like you're talking about. The money with my current job is great but it has no future in it. I'd like to do some sort of managing or sales job in the future to help with my business endeavors. Really solid advice Patrick thank you, I always considered a real estate agent but never a property manager!

OP

Tuscaloosa, AL · Member since 2017 · 42 posts · 6 votes

9y

@Jean Bolger I was told the other day that I have a mindset far beyond my age and it was the best compliment I'd ever received, so your compliment means a lot to me! And I'm checking it out now

Shaun R.

Real Estate Agent · Denham Springs, LA · Member since 2017 · 226 posts · 159 votes

9y

Wayne Yates I can understand the reservations, but I think the temporary sacrifice would be worth it if you take advantage of it and do something meaningful with the money you save. But if you were to take the money and blow it all, then you'd have sacrificed for nothing.