All Forum Posts by: Tanner Marsey

@Brent Coombs I don’t know if that’s really what I mean....there are lots of pros and cons to where I currently live. I used to love it and wouldn’t ever dream of leaving however the last few years the city has started to change in a big way. And I don’t know if the price of homes, the crowds, traffic and development are worth it or if it’s even a place i want to stay/raise kids. The way parts of Oceanside are now..... I agree that I don’t WANT to move my family there but In 5+ years that could be an entirely different story.... and that’s kind of what I’m betting on. Obviously that’s a roll of the dice....  

The reality of staying where I live is saving a large down payment (200k+) and continuing to work overtime every single month to make ends meet and provide a decent lifestyle for my family. And I don’t want to do that.... I’d rather be home watching my kids grow up. 

I am just trying to find out if the it makes financial sense for me to buy down there and possibly use as an investment if living there doesn’t work out. I think it would but like I said..... I’m pretty inexperienced and trying to get some opinions of more knowledgeable people who have been here before. 

Thanks again for the replies. 

Thank you! I appreciate the detailed response. I’ve felt confident that I could break even from the get go. But trying to make sure that if I am taking a hit every month I’d still be okay. Not sure what all the numbers are for the area I’m looking in but I’ll do a little research, plug it in and share with you guys. I really appreciate all the feedback. I’m just getting into this whole thing and definitely need guidance. 

You guys all make valid points.... and I’ve definitely thought renovation and maintenance costs.... losing money on a month to month basis would be worst case scenario. I feel pretty confident I could break even. I guess I’m trying to get the best of both worlds. Have it be a primary residence burn also be in decent shape and come out ahead long term if it ends up becoming an investment. 

Here is why I don’t get the math and I’m sure someone more educated and experienced than myself will be able to see the flaws but for example

Say I lose 200 dollars a month on the property..... that’s 2,400 a year x 30 years.  72,000 dollars over the course of 30 years. So 72,000 + 50,000 down payment you’re into it for 122k. Let’s assume it rents for 3k/month 25 years down the road.... 5 years collecting rent you’re at the break even point. Everything after that is profit.....? 

I’m sure it can be done better and more effectively but I’m just unsure how. I’m wide open to suggestions. 

Thanks! 

Definitely crossed my mind, however, surrounding neighborhood values are increasing. Lots of bars, restaurants and shopping going in. Many homes recently redone or in the process of being remodeled. It’s always a possibility but, long term, I think it’d be a win. And even if it didn’t.... could probably at least break even with a renter in there. 

Might be a little long winded but I don’t really know who else to ask and there seems to be a lot of knowledgeable individuals on here. Anyways, I’m looking for someone to tell me if my strategy is flawed, sound or could be done better.....

I am 30 years old, family of 5, six figure income living in a very affluent Southern California city where six figures doesn’t go far. I have a good job that offers a healthy pension and I make outside investments into 457 etc..... but I want to retire early and am planning on doing so with rental property. 

I have one property already that is cash flowing which is great. I want to move my family down to Oceanside ca and buy a single family home. Oceanside offers some of the last affordable beach city property in so cal, the neighborhood seems like it’s gentrifying and I truly believe over the years you will see a huge increase in the home prices in that city. My wife does not want to move the kids down there until the neighborhood gets nicer. My question is would it be a bad move to purchase a home and rent it out while we wait for the neighborhood to improve? I am into these properties for the long haul. 20-30 years from now. Does it matter if I lose 100, 200 or 300 dollars a month on it when I know eventually it will Eventually be Paige off by renters and will be all positive cash flow down the road? The way I see it..... it’s no different than putting that money into the stock market or 401k or whatever’s. You tuck into away and hope to get a return down the roadblock. Any advice is appreciated. 

Thanks!