Leaving Long Island for Texas

[MBAVisionary]

Quote:

Originally Posted by Texas Proud The commute is not bad compared to many... But, how much would it cost you to move closer? Is the new place in a nicer neighborhood? Also, do you drive the whole way or take some form of public transit? I know that here there are closer places to downtown, but there is a good amount of RE between where I am now and downtown that is much worse than here... and getting really close is at a much higher cost... I had about 50 to 60 minute commute and lived with it for years... no good alternatives..

It’s currently an 18 mile drive each way so 36 miles round trip. I take the toll road now which cuts my commute to 30 min on most days. I think it’s about $3 but worth my sanity.

My rent now is about $850, closer to work would run around $1200 for a smaller space. For something nicer I’m thinking $1300-1400, walkable to work. The areas are closer to the uppity part of town, where I’ll gladly drive to meet friends or stop by after work. Just never been a big foodie that has to eat somewhere fancy every night. Where I am now also has a plethora of restaurants within a 10 min drive.

Objectively speaking I don’t think the area is particularly nice for living though. Lots of homeless folks just a few blocks over along with the highway. It’s kind of the polar opposite of suburbia. A bit of a concrete jungle if you ask me. There is lots of new development within 10 minutes. Parking still is crap and still some sketchy areas.

I also don’t see my friends as much as you’d think. Once a week maybe twice. They’re busy with work, their own friends, or completely different interests. Heck a friend in the same complex as me I hang out with like 3 times a year. I might be an introvert...

[ncbill]

if you want to continue switching vehicles as often as you've done in the past & can keep your driving under 15,000 miles/year, there's always something on special (if you can be flexible) in the leasing arena.

yes, you'd always have a monthly payment, but you'd have a known expense of a few hundred a month vs. having to drop 5 figures all at once.

though you won't get the best rates in Texas (vs. California or the Northeast)

see leasehackr [sic] dot com for ideas.

[MBAVisionary]

Quick update.... I did change my 401k witholdings to 20%. Puts me in a better situation tax wise. Once employer match kicks in that will be 24.5% of salary. Decided I don’t want to have a heavily underfunded retirement when I’m 40, 50, 60. Don’t trust social insecurity to be around when I’m of age. As I have more disposable income this will go toward savings, debt, or other retirement vehicles including my Roth IRA.

[MBAVisionary]

Eleven. 11 Years have come and gone since my first posting to this forum. I was a total mess and think I’ve made a lot of progress. Definitely not perfect, but I have basically 3x ed my net worth. I know there are others who are starting off from ground zero or negative so to speak. What have I accomplished?
• 2011 – Left New York for Texas
• 2013 – Broke $50k Salary for the first time, started putting money 401k
• 2016 – Paid Off My Student Loan, over $62k with interest
• 2018 – Got a higher paying job after a series of raises with the previous one
• 2020 – Paid Off my 3rd new car since 2008 (April) - not buying new ever again
• 2020 – Became officially debt free (April)
• 2020 – Hit $100k investment portfolio (October)

I’m not yet at a six-figure income though getting closer to it. Lukewarm about buying real estate. Yes it would be a nicer place to live, but don’t want to worry about the maintenance, property tax, higher utilities, insurance. It’s also just me one person and a small dog. Do I really need 1800+ sq ft to myself? The idea of renting in my 40s or being priced out of the market both scare me. Texas has lots of people moving here from all over the country. The recent pandemic has accelerated the migration. The townhouse I used to own in 2012 for $142k is now $200k+ after some upgrades. So 41% appreciation in 8 years. If that trend continues for another 8 years we are looking at $282k for what is arguably still a starter home or $400k for a slightly higher end property. I'm also working 100% remote perhaps for another 10 months so the need to rent / live close to work is not so much of an issue.

Also there’s the downpayment…
For a $220k property = $44k... 2 years = $1833 / mo. 3 years = $1222 / mo.
Current rent is = $900/mo. I put $200/mo in my Roth IRA (FZROX), $100/mo in M1 Finance (assorted index funds and single stocks) and $1767 in 401k including employer match (100% FSKAX). Total = $2,067/mo and I can still ramp up the Roth IRA a bit. Thinking more going aggressive in equities and getting those to the point where I can buy property outright.

Is my view of being less focused on real estate and more on equities limiting me?

[Markola]

Congrats on all of your progress. I think the answer is in your own post, which is that real estate is not much of an investment if you own and maintain a single family home that is also your residence. There is a strong emotional draw to it but the actual numbers, if tallied honestly and fully, don’t usually compare to the higher return and simplicity of accumulating stock index funds. Plus, you’ve worked so hard to become debt free, do you want to volunteer to be encumbered by the biggest debt of all, a mortgage? What if you rented a slightly nicer place instead and put the balance in stocks? Someday you could buy a house for cash, if you like.

Just a different perspective from someone who would, looking back, have been a lot richer had I focused on stocks rather than taking the normal road and owning houses with their endless expenses. Here’s an article to consider: https://jlcollinsnh268650683.wpcomst...le-investment/

[Gulfbeach]

MBA Visionary,
I just read this entire thread in one sitting and am amazed at how far you have come, and not just geographically!
I suggest that any time you get discouraged you read it all and be proud of your accomplishments.
Good luck to you going forward.

[Car-Guy]

Ah yes, Texas values are working for you....


So, "Don't Mess With Texas".

BTW, that's an official Texas slogan.

[Gumby]

Quote:

Originally Posted by Car-Guy Ah yes, Texas values are working for you.... So, "Don't Mess With Texas". BTW, that's an official Texas slogan.

As I recall from living there back in 1986, it was an anti-littering slogan.

[Car-Guy]

Quote:

Originally Posted by Gumby As I recall from living there back in 1986, it was an anti-littering slogan.

That's correct and it's still used today and of course that was my meaning....

[REWahoo]

Quote:

Originally Posted by Car-Guy So, "Don't Mess With Texas". BTW, that's an official Texas slogan.

Quote:

Originally Posted by Gumby As I recall from living there back in 1986, it was an anti-littering slogan.

^ This.

The official Texas motto is "Friendship" while the official slogan is "Texas: It's Like a Whole Other Country"

[Car-Guy]

Quote:

Originally Posted by REWahoo ^ This. The official Texas motto is "Friendship" while the official slogan is "Texas: It's Like a Whole Other Country"

Of course Texas it's more than big enough for more than one of each.

[Exchme]

Impressive progress, congratulations on digging out. Houses are great, but something is always breaking, which not only takes money but a lot time to coordinate repair people. So if you don't need the space, renting is OK.

[MBAVisionary]

Quote:

Originally Posted by Markola Congrats on all of your progress. I think the answer is in your own post, which is that real estate is not much of an investment if you own and maintain a single family home that is also your residence. There is a strong emotional draw to it but the actual numbers, if tallied honestly and fully, don’t usually compare to the higher return and simplicity of accumulating stock index funds. Plus, you’ve worked so hard to become debt free, do you want to volunteer to be encumbered by the biggest debt of all, a mortgage? What if you rented a slightly nicer place instead and put the balance in stocks? Someday you could buy a house for cash, if you like. Just a different perspective from someone who would, looking back, have been a lot richer had I focused on stocks rather than taking the normal road and owning houses with their endless expenses. Here’s an article to consider: https://jlcollinsnh268650683.wpcomst...le-investment/

I have a feeling once a hit a couple hundred $k in my investment portfolio I may end up changing my mind. You do make a good point. Being able to buy a home outright or have the money aside to if I wanted would be pretty bad-ass. Heck even 50% down vs 20% would bring the mortgage down so much.

You are also right, I'm very much debt averse. My working class parents didn't pay their homes off until their 60s. Sure the stuff that takes under a month or maybe a few months if it's justified are fine. The 5, 15 or 30 year debt obligations with potentially massive associated overhead... those are the ones to look out for unless it's truly generating cashflow.

My current lazy investment targets are $150k by 2023 / age 40, $350k by 2033, $600k by 2043 and $750k by 2048. All are doable on my current salary. I love JL's work, especially his investment series and talks. Forgot about that post until now, the advice still holds true. Also since I had a bit of a later start in life it pays to be as aggressive as possible now.

I do think renting a nicer place is an option too. Maybe an extra few hundred a month but not from 1983. That is literally when this place was built and the inside feels like it too. Thank you for commenting.

[MBAVisionary]

Quote:

Originally Posted by Gulfbeach MBA Visionary, I just read this entire thread in one sitting and am amazed at how far you have come, and not just geographically! I suggest that any time you get discouraged you read it all and be proud of your accomplishments. Good luck to you going forward.

In one sitting? You have the patience of a saint. Thanks for the words of support! Running a blog chronicling my progress since April 2012 really helped keep me accountable. Without the economic opportunities Texas has provided me I would still be struggling to pay things off. Without mentors such as people on this forum, Mr. Money Mustache, NoMoreHarvardDebt, Dave Ramsey, popular YouTubers and my own nagging mother... I might have just stuck to paying that bare minimum or perpetually stuck in Income-Based Repayment. Some of us are more stubborn than others.

I still spend money on things I enjoy within reason. I was paying $1000/mo on the student loan and $541 on the car loan. Looking back that was so ridiculous, not sure what I was thinking... Oh wait I wasn't... lol

[MBAVisionary]

Quote:

Originally Posted by Car-Guy Ah yes, Texas values are working for you.... So, "Don't Mess With Texas". BTW, that's an official Texas slogan.

I see it on bumper stickers everywhere hahaha. Overall I'd say yes. There are things I definitely think should change here. However this list is a lot shorter than my corresponding list for New York. I don't know how people spend $3k/mo to sleep in a shoebox with a view or just to be in a nice part of town. Often we must go where the money is. For now Texas remains a top contender.

[eytonxav]

Quote:

Originally Posted by Car-Guy That's correct and it's still used today and of course that was my meaning....

Of course over time, old slogans develop new meanings.

MBAVisionary, Good job, keep up the good work/progress.

[Ian S]

I'm another one who had to go through the entire saga which, as a gay man, I found especially interesting. I'm glad you continued with the updates; you took the kudos and the criticisms to heart - even the ones I felt were a bit on the harsh side. In any event, sounds like you have a general plan for the future. Stick to it: my husband just lost his job due to covid-19 but we are in a financial position that will allow him to be picky about his next job. I'm retired, we are debt-free and own our dream home outright. Even with this crappy year of the virus, life is still pretty good for us. It wouldn't have been possible without a lot of saving starting in the early years after college.

[txtig]

Quote:

Originally Posted by Car-Guy Ah yes, Texas values are working for you.... So, "Don't Mess With Texas". BTW, that's an official Texas slogan.

Or, in the immortal words of Ray Wylie Hubbard, “Scr*w you, were from Texas.” Not an official Texas slogan.

[MBAVisionary]

Just over a *year* since my last post. I was 28 when I started this thread and a total trainwreck, now I'm 38.
As of 10/24/21 - $184,043 is my net worth not including my vehicle, any items I own or $800 sitting in my checking account. I pay rent about 2-3 weeks before it's due so that is one less thing to worry about.

I did have $5k sitting in a money market account for a year and moved to my $3.6k to the Roth IRA this month to max out for 2021. Plan to get the emergency fund back up again in the coming months. Still have access to $6k of investments I could pull from without paying any penalties aside from taxes. Also diversifying a bit more with crypto as a hedge against inflation and the possibility of more rapid growth vs an index fund. It's still only 1.3% of my overall net worth. Eventually I'd like to get that up to 5%.

Crypto - Solana, Bitcoin, Etherium, Polygon, Shiba Inu, Litecoin. Then I got $55 total in free ones on coinbase by watching several 5 segment education slides - Stellar Lumens, Compound, The Graph, Fetch.ai, Balancer, NKN, Ampleforth Governance, Clover Finance, Crates, Ankr, Amp, BarnBridge

10/24/21
401K: $155,878.58
Roth IRA: $20,499.11
Inv Acct: $3,473.33
Crypto: $2,349.28
Buffer: $279.18
HSA: $1,563.57
Total: $184,043

My goal is to have a net worth of $1MM by the time I turn 50 in 2033. I don't know if I'd actually retire by that point but always nice to know it's an option. Based on inflation I might need considerably more or add a couple years before hitting FatFIRE. Between my 401k contributions and matching, maxing out the Roth IRA, and my taxable investment account that's $2,664 per month that is going to investments. I've been in a 1br apartment since 2014 living with just the dog and my $965/mo rent. Got a raise this year but it was less than I had hoped especially with recent inflation.

I might take my pedal off the gas a little bit. Early this year I lost a 34yo friend due to covid in February less than a month before vaccines became widely available. One of my aunts with long term health issues also passed in January. Balancing aggressive investing with enjoying life and the occasional splurge here and there. Just to recap and iterate... June 2013 I had $0 in retirement and a -$45k net worth, so up 5x since starting out. Up about $84k or 84% since my last response on this thread. Assuming things don't crash and burn I'll clear $200k in 2022.

[MBAVisionary]

5/30/22
401K: $152,176
Roth IRA: $20,856
M1 Acct: $5,239
Crypto: 0 (yeah I lost some money on it so I decided to sell)
Buffer Fund: $2,050
HSA: $2,292
Total: $182,613

Hard to believe it's been 14 years since joining this forum. Through aggressive investing I'm basically at the same spot I was 7 months ago even though the market dropped about 8.6%. I looked at about 17 different apartments to move to online but the rental prices have gone up so much. Decided to stay put, my rent just increased from $955/mo to $1134/mo. The places I would consider a real upgrade were about $1700/mo, comparable or a step down in size averaged about $1400/mo.

I still want to hit $1M in investments by the time I'm 50 even though we're in the middle of a bear market / recession. Trying to enjoy life while also getting close to that goal. Currently between my contributions and matching I'm at $2,755 per month in 401k/Roth/Taxable/Emergency Fund. With an 8% ARR that puts me right around that goal.

I got a promotion and am now earning slightly above $100k gross and more once a potential bonus eligibility is included. I'd say my overall stress level at work is up about 30% and my immediate boss of several years is leaving the company later this month. My 2016 Nissan still is functional after 6 years / 71k miles, the extended warranty is up in about 22 months. I work remote but the 23mpg premium gas in these inflationary times is kind of a beatdown. Nearly $50 for half a tank from Costco. Thought about trading in while it's still worth about $20k but most of the options are kinda unappealing.

Why am I resurrecting this thread? Well I'm turning 39 soon and I've been waiting for the housing market to cool off since 2015. It hasn't happened, in fact housing increased almost 20% the past year in the DFW market. It would take a while to hit 20% or more for a down payment if I stay with my aggressive investment contributions. I heard some banks would waive PMI if you have 10% down. Sounds like a big catch is potentially a higher interest rate.

My next and hopefully last lease is up 8/15/23. For a $300k house. 3% DP is 100% doable, 10% would be a stretch, 20% is not doable without selling off some assets. There are also programs I would qualify for that offer downpayment assistance. Is it irrational even as a single person to not want to rent in my 5th decade of life? Then there are miscellaneous fees like closing costs, things that miss inspection, additional furniture, utility setup, inspections, HOAs. 1300-1800 sq ft is probably all I need when planning ahead.

Last but not least I'm not sure if this is the right city for me being single almost 7 of the last 8 years. Kind of a small dating pool over time considering my age / hobbies, especially with only one degree of separation in some regards. Moving might be a healthy change for me in that area but change also scares me. Anyone older or more experienced care to lend some advice?