Update- question for 36 year old.
Hello all- been a long time since my last post-
House- 80k (interest rate 2.65%)
I am in the process of a job transfer (same company) but to a city located about 1 hour away. The city is a GREAT rental area.
Here is my question. I am thinking of buying a townhome/condo/duplex in the town and stay there about 2-3 night a week (kids have a few years left before graduating, so I donít want to uproot them. All closing costs and moving expenses will be covered. My rate should be around 3% as well.
I am looking at getting a roommate to offset the costs, or just set it up as an Airbnb. I am looking 150-200k max for the purchase. Am I crazy for doing this, or does this make sense? Also, should I look at an LLC to hold it in? Iíve always wanted to get into renting, and I think this could be a great opportunity. Please advise.
When I worked in other cities, I rented a room in house with privileges of kitchen use and laundry. I usually paid $500 /mo.
Is this job move permanent or temporary ?
A couple of thoughts...
1. When I lived overseas my commute (driving) was an hour. It's not too bad. Where I live now it is an hour or more to commute downtown (lots of folks do it).
2. Guys I worked with who lived 2.5 hrs away from our office negotiated with the local Fairfield Inn and got about $50/night and plenty of points and status with the hotel program. They were assigned to my plant for a temporary role that lasted 7 years in one case.
2a. Another guy who lived 2.5 hrs away in the other direction opted to buy a condo. It cost him quite a bit when he eventually sold it and admits today it was a mistake and renting a room or staying in the hotel was a better choice.
3. My mega corp only paid moving and closing costs if you sold in one location and bought in another. Double check you have the option to keep your family in one place and get the relocation package.
4. I'm not a supporter of long distance landlording. I tried it and it was a PITA.
Job Is permanent. I’ve worked for the same company for 15 years.
A commute of about an hour really isn't that bad. Are you on call? If not, try the commute for a while while you learn the new area. Then if it really does suck, finding a little rental is probably easier.
If you can manage the commute until the kids are graduated, then you can downsize the house and move all in one step.
I think the long term considerations are relevant. Are you where you want to retire? Is owning real estate really part of your investment strategy to FIRE?
I did a weekly commute for a couple years. It puts a stress on the family that they will remember... what do they say?
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