Need advice on "best option" for my situation

[Austin B.]

I am pretty new to real estate. Bought my first home in 2019, thankfully right before the mayhem that saw home values go to the moon. I am ready to move on from this home for various reasons. I expect to sell it for about $100k over purchase price. After closing costs + fees I am going to pay off some personal debts I incurred while unemployed last year. After all is said and done, I expect to have about $50k leftover. I wanted to look at moving south, somewhere a bit warmer than where I currently live. I was toying with the idea of buying property south of the border, but I don't think that's the best idea for somebody so new to this game! My situation is: I'm single, I work remotely, income $145k and I really dislike the cold and am considering a winter-long trip touring Mexico, something I have wanted to do for a while.

I think the best option for me would be to find a townhome at about ~$500-550k with 3-4 bedrooms, rent the rooms out and live in one. Then, I can decide if I do want to leave for the winter and I can rent my last room out during that period. There aren't a lot of other options that make much sense to me, but if you have any suggestions then please let me know.

The other option is: don't purchase any property, just do some short-term rentals (or heck, buy a camper van!) and put the rest of the money in some other investment, like a REIT or even an index fund.

[Brandon Rush]

Hey Austin,

In the end, this decision will be based on your long term goals. Where do you want to be in the next 5-10 years. From there, work your plan backwards until you reach today. Then limit your options to those that would align with your goal. 

You mentioned purchasing a townhome and renting the rooms out. Question, if you leave that townhome and go South, do you believe you will be able to manage 3-4 tenants who are sharing rooms? Or will even be able to find a property manager to manage it for you? Going with that option may lock you into a headache if there is a possibility you may be leaving in the near future.

Have you considered buying a multifamily property? It may make more sense and be easier for self management or a PM after you take off. 

Also, in terms of your goals, do you want to be an active investor or passive? Nothing wrong with either, but something you must figure out. 

I know this is not the best advice, but again, it comes down to what your goals are.

Good luck on your journey!