New location with work every half decade. Buy or rent?
I just accepted a job in Bozeman, Montana as a project engineer. I will be living there right out of school. I should be in Bozeman for less than 1 year before I am relocated to a new area for a project. The duration at these job sites will be anywhere from 3-9 years before returning back to Bozeman to repeat this cycle. In other words I'll be relocating every half decade with work, what would you do in my situation about housing?
My ideal scenario is to have a single family home in Bozeman and acquire small multi families in the temporary project areas (I am provided housing allowance) to househack with. Leaving me with rentals over the years across the US.
What are your thoughts, and how would you go about this situation if you were in my shoes.
Most Popular Reply
Hey Bridger,
Nice to hear from fellow Montanans, I'm in Missoula myself.
I would agree with Ian about being aware of the potential challenges with a portfolio spread across the US. Having a RELIABLE team in each place would be a necessity. Then, be sure to factor in the costs associated with having rentals in different states (PM, taxes, biz entity registration, etc.) on top of your normal expenses. That being said, if your company is kicking you funds to live there, I would jump on board with your idea.
Last, because Bozeman's market is so expensive right now, it may be worth looking at how long you plan to be there between jobs. Im not familiar with rents there, but if its remotely similar to Missoula, theres little chance the rent would cover even the mortgage on a SFH. So, you would constantly be facing negative cashflow (potentially a lot) for your "home" while away. Additionally, being so cashflow negative on the Bozeman residence would hurt your D/I ratio when purchasing those other units.
Maybe it's worth renting while back in Bozeman, or purchasing a small MF unit in a few years that would at least break even while you're away. I see long term appreciation benefits in Bozeman, but I would view the cashflow as a big obstacle.