So long story short I’m coming back from a deployment with a lot of cash. I’ve been renting and have never owned a house because I was never happy with the market. But, now I’m considering buying one for the purpose of renting it out when I PCS.
My personal finances are good. Cars paid off, no cc debt, student loans, etc. I have a six month emergency fund for my family and we max out both TSP and IRA every year.
My plan would be to buy the house, live in it for a year, then PCS and rent it. Not for the purpose of “passive income” but just to have someone pay my mortgage and capitalize on the rent growth and value of the house over time. If I did do this, I would keep ~$25k in a separate HYSA for the purpose of any expenses incurred managing the home. My budget would be $275k-$325k and rent it out for around $2200. Obviously I would look for a home with newer roof, HVAC, etc. Using a PM I estimate I would lose about $250 every month until payments were more equity.
I’m in a growing community with a prominent college at the center of it. For those who have done similar, am I delusional or could this be a good play for a long term investment? It should probably also be mentioned I don’t intend on moving back to this area and I will be buying a house at my next base.
Posted by streamerdave