My next move....Suggestions....????

[Chance Cooper]

Ok folks, here is my update...

Last time I checked in I believe I was in Afghanistan and was near paying off my first rental house...Well now I am about 3 months from leaving Sinai Egypt, my second deployment. I am nearly debt free, have about 20k liquid, and a house that I owe about 15k on that generates $850 a month income (this is my only debt)...

I called my bank today and they said that I could get right at $68k for the house on a refinance and the payment would be $587 to include taxes and insurance... I am thinking about refinancing it, and taking that money and paying cash for my next house at my next duty station.

This means that the 3 years that I am at my next duty station, I wouldn't even have a mortgage to pay every month...What do you guys think? My dream is to own about 10 houses that cash flow and to manage them once I step away from the Army...

What move would you make next? 

[Mackal Smith]

Great idea Chance. Here's on additional piece of information you may not have thought about. If you get the next house at a decent price, think about a live-in flip (meaning buy it needing work and fix it up while you are there.) The advantage doing this would be that as long as you live there for 2 years, you can sell it at a profit and not have to pay capital gains taxes. This is huge. Consider if you would pick something up for 70K say and you put 30K into it over the next 2 years. If 2 years later you sell it for 150K, you get to walk away with the entire 150K and owe no taxes at all.

- mac