I want to get in on the benefits of home ownership, and I want to buy into this depressed market. Since I'm deploying so much, I'd rather just rent the place out and rent a room at a friend's house to actually live in.

Anyone have any advice for buying property that I could at least initially break even with the rent, assuming a $20-30k down payment? Is this even a reasonable proposition? I'd be looking in the New Bern/Havelock/Morehead City/Atlantic Beach area.

I know that this will require staying somewhat modest with the property in order to make money...that's fine, other than I don't want junk.

11/28/2008 6:56:28 PM

20-30k down doesnt even buy decent in raleigh

11/28/2008 7:37:46 PM

for a down payment?? yea it would??

[Edited on November 28, 2008 at 7:47 PM. Reason : .]

11/28/2008 7:47:06 PM

is a down payment mandatory? bus 225 professor said put as little as possible...20-30k seems like too much

11/28/2008 8:09:13 PM

well you have to qualify for the financing.

11/28/2008 8:12:37 PM

I think the only main thing about putting 20% down is you don't have to get mortgage insurance.

11/28/2008 8:12:58 PM

You're much better off getting an investment property in a city like Raleigh, Carrboro, Charlotte or another market that has decent population growth and rental markets.

Buying at the coast means seasonal rental income, or it means having very shitty renters if you rent year round. Also, you will lose 15-20% of your rent to a management company, which you will need if you want this to be a hands-off proposition. It's doubtful that you will be able to break even on the payments after property taxes and property upkeep costs for renters. But it is still a good idea, because you are effectively lowering your mortgage over time, making the returns when you sell the property much much higher.

11/29/2008 4:24:46 PM

Jeez, you're 3500 miles away and you're a NC Coast property expert now?

11/29/2008 10:15:54 PM

I've had friends make a killing by picking up property near Atlantic Beach that includes a boat slip and then renting out both separately.

11/29/2008 10:21:09 PM

that might be above and beyond what I want to spend, though.

i'll have to look into it.

The other thing is, one of these days I'm going to buy a house to actually live in--I don't want my debt:income ratio to make it tough to get a mortgage because I already have a mortgage on another house.

11/29/2008 11:17:51 PM

already nix the boat?

11/29/2008 11:34:05 PM

^^ Most of them found condos with a slip for farely cheap. I would recommend looking into it.

11/30/2008 12:28:38 AM

^ rog

^^ just considering all options

11/30/2008 6:31:20 AM

Quote :

"The other thing is, one of these days I'm going to buy a house to actually live in"

Whats the timeframe?

Shit, am I allowed to talk to people in Iraq about time tables?

11/30/2008 10:02:56 AM

Quote :

"The other thing is, one of these days I'm going to buy a house to actually live in--I don't want my debt:income ratio to make it tough to get a mortgage because I already have a mortgage on another house."

I'm facing this as well... and the other things to definitely consider are taxes and insurance... Those combined on our lake house are what most people pay on a mortgage... They shouldn't be nearly as bad for what your looking at... but definitely tack on a little more than your currently thinking

11/30/2008 10:13:13 AM

^^man, I don't know. It all depends on how my career unfolds, assuming I don't get married or anything (which is not even on the horizon at all), and it's anyone's guess.

Assuming I have roughly 2.5 years left at Cherry Point (should be rotating out around mid 2011), and assuming that we're getting back from Iraq in spring 2009, then deploying again in early 2010, then getting back that summer, it'll never be worthwhile for me to own a house and live in it at Cherry Point. After that, it's anyone guess as to what I'll be doing for a few years. My #1 choice is to go back to flight school to be a pilot (in which case I'll be in Pensacola for a year or so, then probably MS for a year or so, then somewhere else for a year or so learning my specific jet). Not worth buying in that scenario, for sure.

Another thing I'm interested in is going to Washington to be a Congressional liason for a few years. Maybe worthwhile to buy something in that scenario.

Another thing I'd like is to be a foreign area officer--they send you to get your Masters' in Monterrey, CA, and get you fluent in a foreign language and culture, then send you to that country for a couple of years with a travel stipend, etc. Basically, you are NOT a spy (and are specifically instructed NOT to engage in espionage, etc), but you are to learn everything you can about that country, it's population, it's leaders, etc...then when you get done, you are a resident expert anytime they need advice on something to do with that country. Doing this really hinges upon how things play out with my daughter, and I suspect that this would infringe upon my involvement with her, so I probably won't do it (if I could manage to get custody and take her abroad with me for a couple of years, I'd consider that, although then that would impact her time with her mother, so I probably still wouldn't do it). In any case, this would be another 3-4 years where I wouldn't be buying a house!

Of course, if I ended up getting married in a few years and staying around coastal NC, I'd certainly be interested in buying a house.


^ yeah, I have no debt of any kind right now, and don't really intend to incur any in the foreseeable future, but >$1000/month child support payments are considered a debt payment by lenders, and that hurts my debt:income ratio pretty significantly.

[Edited on November 30, 2008 at 10:25 AM. Reason : asfdasd]

11/30/2008 10:22:16 AM