I've been keeping an eye on the housing market in my local area for a while and may have found a decent VA loan Assumable house. It's close to a major military installation and the existing mortgage rate is less than 3%. I would plan to live there a few months until I deploy and rent it out long term after that. It has the potential to cash flow roughly $500/mo which is very rare for todays market given the housing prices/rates. My only concern is that it will cost me about $45k upfront to cover the gap…which will nearly deplete my cash savings. I'm solely looking at it as a potential investment opportunity and not that I'm buying my dream home by any means. It's a lot of cash to shell out upfront…granted it's instant equity in the home.
On the flip side Im currently renting a room with some buddies and paying less than 1000/month. If I don't buy a house now, I could bank full BAH when it comes to deployment and continue to save cash or I pull the trigger and buy the house as an investment.
I'm looking for general investment advice from someone who may have been in a similar situation. As a newly frocked E-5, $45k is a lot of money and almost all of my savings (not counting retirement accounts etc).
Posted by rra1697