With currently salary, I am perfectly fine with the mortgage and other bills. I only have a little savings at this moment but there are invenstment opportunity. Will buying a second home a good idea if you rent it out? I understand, it may NOT be rented out 12 months but have anyone had similar situation?
Thank you for posting in the Community. I appreciate you reaching out to discuss purchasing a second home for investment purposes. I realize you are reaching out to your fellow members for advice, but USAA also offers Free Financial Advice to our members. You can contact us at 210-531-USAA (8722) to discuss with a representative. If you do decide to purchase a home, USAA can offer assistance. Thank you for being a valued USAA member. -Gus
I wouldn't sink any money on a property just so you can turn around and rent it out (for investment). You'll find that you will continue to regularly expend resources to keep the rental in good condition, because most renters just don't take care of other people's property. I'm an HOA President (military community) and I see that on a regular basis. I can also tell you from my personnal experience (11yrs) that I had to constantly spend money on many things just so the tenant could turn around a destroy it. One of my neighbors just had to sink in over $5k to repaint her rental after just one year. I rented my house for just 10yrs (7 tenants). When something needed to get repaired or taken care of--it was done, because I wanted to come back and live in it eventually. I did come back, but I had to rip out carpets/flooring, water softner (because it wasn't kept up even though I had an annual maintenance contract and filled it at least once a year--but tenants would have to do the rest), replace uncleaned toilets and several damaged doors (and door frames), repair/repaint walls, replace windows and cleanout the A/C ducts because the grills were filthy (they hadn't replaced filters in a year even though I had a regualr annual A/C inspection). My lawn was completely gone (even though I had a computerized sprinkler system). The tenants brought in by my property manager were a bunch of slobs--and yes--some were military. All on a home that was just 3yrs old when I left it--due to military transfer. There are better (and less stressful) investment options out there. Don't sink in your hard-earned money in a losing cause. It eventually cost me about $48k to return my house back to normal. I'll sell my house before I ever consider renting it out again. Don't even try to put your trust in property managers. They don't care either.
Wow, USAF_Ret - That certainly doesn't sound like it was a fun time for you. I appreciate you sharing your personal experiences with the membership. Thank you for your service. - Cathleen