Good or Bad Idea?

**t_eden87** · 02-20-2011, 12:03 AM

I am debating buying a home. The only catch is that I am in the military and will only be at my current location for around 2 and a half years. I could end up staying here for longer, but you never know with the military. I do know that I have 2.5 years here for sure. I have a few houses that I have found and if everything went as planned I would be paying 100-200 dollars less a month on a mortgage than I am currently paying in rent. My idea was to buy a house now, take advantage of the current market, then when the military moves me around hire a property management company to rent out the property. I would hold on to the property for at least five years or longer depending on the market. Is this a good idea or would it just be better to wait until I get some where that I am going to be for a longer period of time? I want to get started with owning rental properties. I feel like the best way to get started is just to dive in head first. Is this the wrong way of thinking? What am I missing? Should I be looking at condos instead of single family homes? Or even a duplex? I do know that I am guaranteed to never see a dime of my rent money again. Thanks for any feedback in advance.

**realestategirl** · 02-24-2011, 10:43 PM

The best course of action is to first look at how is the rental market in
your area. Is it strong or weak? and then inquire if the place has the potential to develop in which the property will not run out potential renters. Just like homes, rental properties can go up and down, primarily depending on the job market in your area. If there are plenty of jobs or jobs to be created, then a rental business would be great for you.

**Greg** · 02-25-2011, 06:50 AM

Military housing is always in demand so your plan sounds like a good one.

The only problem would be if in the future you decide to settle down in one place and want to buy a house but you can't afford 2 mortgages..

**malcolmjohnston** · 02-25-2011, 06:58 AM

The real estate market in military areas tends to remain very vibrant due to the influx of personel moving in and out of the area. Owning rental properties can be quite profitable as well as long as you do it the right way. Property management companies do charge a fee, and as we have all learned in the last couple of years, there's absolutely no guarantee that the value of your property is going to go up.

I'm a real estate agent in a military town (Trenton, Ontario - Canada's largest airforce base), and there are a large number of people in my market who own investment properties. I have seen it done right, and I've seen some real horror stories as well. Even with a property masnagement company, there's no guarantees that your tenants will take care of your property as well as you would like them to.

**Codythebest** · 02-28-2011, 02:48 AM

Go with the purchase. Prices are increasing slowly but surely. You'll pay less than rent and will build some equity. Just do the math in regards of your fees to see if you can make some profit...

**MrPolarZero** · 02-28-2011, 09:31 PM

I suggests you to invest for a house already. Even though you are not sure of how long will you stay on the military camp, at least you have invested something for yourself and for your future family.

**flash.investing** · 03-01-2011, 05:20 AM

It seems like a good idea to go ahead and purchase a house provided you can see the financial benefit in the short and long run. As far as what to do when you relocate, maybe renting will be the best choice and maybe selling (provided you can see a profit) will be. Be careful with a management company. Start doing your research far in advance and get references. Unfortunately, being in the military makes you a target for being taken advantage of by unscroupu;ous people.
Good Luck!