Move to Oahu or stay in Pensacola?

[Justin Jones]

I'm in the Navy and my wife and I are nearing the end of my contract here in Pensacola. I have the option to stay here for another 4 years or move to Oahu for 4 years. I'm looking for investing advice but also for some life advice.

Below is the breakdown of income in both areas as well as a rough housing cost breakdown. Long story short we will still be able to save a good amount living in Oahu but we won't be able to buy a house. Whereas here in Pensacola we will be able to save a good amount AND buy at least one house, maybe two (this would be our first house and we want to have multiple rentals across the country by the time I get out). We're both relatively young (both 22) and we're trying to decide what the best course of action is. Both places we would be able to save about $800-1000/month after all expenses besides regular spending money. We're trying to decide whether the lost time/ money investing in real estate is worth it considering we'll be getting paid to live in Oahu and will still be able to pocket some money. We're young and relatively free of responsibility so if we're ever going to do it this is the time.

Only debt is 13,500 on my wife's car.

Our total NW right now including the car loan is about $1,550 (We saved all of our tax return which brought us above 0!)

Thank you guys for the help and advice!!

Honolulu: 

Total monthly income: 5463.71

Average price of apartments we've been looking at: 2000

Pensacola:

Total Monthly Income: 4122.71

Average home cost 200,000 

We have access to the VA home loan.

[Lake Lutes]

Aloha Justin! My wife and I got stationed on Oahu in April of 2019 so I could provide some insight into the mind of a RE investor who is in the military and stationed on Oahu. My goal when we arrived was also to buy. I offered on types of properties and in certain areas of the island before I was educated and knew the island. My first bit of advice would be to get here and use your TLA (temporary living allowance) while getting a feel for the island before making offers. 30 minutes of driving on this island will take you through 5 completely different towns with different feels, traffic, home evaluations, etc. Just because the island looks small on a map doesn't mean that every town here is the same, not even close. Know the island and where you and your wife are comfortable before you offer and get stuck somewhere. After unsuccessfully offering on properties the first go around, we've been renting for about 10 months now, and I am deep into the home search once again. I offered on a property last week and we're in the thick of negotiations. Complete house hacks may not always be possible, but heavy mortgage supplementation is definitely possible and worth shooting for, as tons of homes here have mother-in-law units (or Ohana units) on the property for great rental income. So, although you may not be able to cover all $3K of your mortgage, maybe your 1 bed/1 bath is bringing in $1200 and bringing your mortgage down to $1800K, super helpful! In addition, don't let the hefty prices intimidate you as we have a great advantage with 0% down, or close to 0% down, VA loans. Great opportunity for "free" appreciation!

All in all, do what's right for you and your wife, but choosing Oahu has put me out of my comfort zone in the best way and made me experience adventures, friendships, and culture I never would have on the mainland. Has it delayed my investing career? Unfortunately yes, but I know in 10 years when I have 15 properties I'm going to be talking about and thankful for my time here. It's also help me become more educated and savvy in OOS investing. Hope that helps - feel free to reach out if you have any questions I'd be happy to help!

Shoots -