Howdy biggerpockets,
I am in the Marine Corps, and am moving to Camp Pendleton this summer and will be there 2 years minimum. My dilemma is whether I should rent or buy for that time period. here are my considerations. It will be in the Oceanside/San Marcos area. Price range <$425k. I would be using a VA loan so no PMI. I would most likely be getting out of the Marines to go fly with the airlines after 2 years, but would take an immediate short term pay cut for a few years. Looking at the rental property calculator it would most likely have negative flow 500-1000/month. So I don't think I would want to keep it as a rental. If I sell it after only two years- the equity built in would be cancelled out by the selling costs. My only real chance to make money on a deal like that would be if it significantly increased in value over two years. But from my time in the BP community I have learned not to count on appreciation, especially since it looks like values in the SD area are plateauing. Another couple of thoughts- I would be able to take the money I would have invested in this home in CA and buy another rental that would have positive cash flow in the Midwest, where I already have one that is doing well. Also if I don't buy a home here, I can still use my VA loan later on and buy a 4 plex that I could move into. I have looked into the small multi-family in Pendleton area without seeing anything that would really cash flow either. So right now I am leaning towards renting for the 2 years instead of buying. Does anyone have arguments for buying? thanks.
