Need advice on "best option" for my situation
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.
Most Popular Reply
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!