I've made some money and am joining the Air Force - Advice Please.
I'm 25. Serving in our military is just something I've got to do. I hope to ship out in a few months and would like some advice on what to do with the cash we've made in the past few years.
Currently own 3 properties.
The first is under contract and set to sell by months end. This will free up about $90,000.
Property 2 is currently undergoing rehab. Expected net will bring us to $150,000 liquid.
This is where I am hoping for input.
Property 3 my wife and I live in. Bought it about 6 months ago for $245,000. The comps put it at $320,000 after rehab (bringing us to $190ish liquid if we rehab then sell). In these past 6 months I've decided to pull the trigger on joining the military. This forces us to do something with this last home as well as figure out what to do with the $150,000. The military contract will be 6 years and I'm not a big fan of just hiding it under a rock aka sitting in the bank.
We could refi down to a $200,000 (80% ltv to avoid pmi) loan value using about $35,000. Rehab a few minor things ($10k) to rent out over the next few years... buy 2 others as rentals around $140,000 . This would keep about a $30-40k reserve for repairs and our own personal savings. Arguably this is risky since I've no experience with rental properties.
Thanks for your time and input folks,