Why do you want to rent out your house? Are you going to rent out a room or the entire thing? Could you find a cheaper living arrangement?
I'm wanting to rent out the whole house. I'd like to have a few rentals in the next 3-5 years. It's something I've always wanted to do. I wanted to move to a different state, but as far as real estate goes, I'm already in one of the cheapest markets so I wanted to take advantage of that. I still want to move out of state as soon as I can make it happen.
As far as businesses that require very little startup costs... well, tell us more about this selling clothes online gig. Your clothes? Are you buying and reselling?
I started off selling some of my clothes and then experimented with buying wholesale vintage, which sold fairly well. The problem is, there are no warehouses anywhere near me, which means I have to order online, which means I don't know what I'm getting until it arrives. I also have to put money into dry cleaning and sometimes doing minor sewing repairs. This isn't a big deal but I don't have advanced sewing skills. Anyway, I just ordered another batch of clothing (a mix of vintage and modern) and I have to donate 4 bags because they are not sell-worthy. I enjoy doing this but until I have a better way of obtaining good inventory, its going to continue to be an unstable process. Thank you for your encouragement!
Is going back to study out of the question?
Also with such crazily low mortgage payments (and hence prices), are the employment prospects in your area any good?
Going back to school? Ugh, I just don't know. I spent almost 7 years in school and ended up with an AA in liberal arts. At that point I just wanted to get whatever degree I was closest to. I have thought about it but it's almost not worth it for me. I don't learn very well by doing homework. I learn best by DOING and practicing. The only way I'd consider it is if I qualified for grants. If I did though, what courses or degree program would best increase my chances for higher income?
I browse jobs on CL often and am always keeping my eyes/ears open for other opportunities. I've not had any luck though. And besides the pay, my work environment is excellent. Everyone gets along really well and it's very laid back. In my experience that is hard to find. But if I could get a job offering a higher wage, I would definitely take it.
First off, kudos on having a budget and making progress on your debt. For your income level you are doing well and making good decisions.
My guess is that improving your income level will require either a more robust second job or a change in your primary job. I assume the student loans are for having attended either community of a 4-year college. Do you have a degree/certificate from your studies? It sounds like you may be getting some valuable experience at your current job, but that it may ultimately be a dead-end financially. Are there other jobs in property management that you could bridge up to somewhere else?
Thanks! My next step in property management if working for a company would be Property Manager. I'm definitely not ready for that yet but I recently started exploring other ways of gaining that knowledge including taking online classes for industry specific certifications.
Wait. Is your income 20k + 25k or 25k total?
Rental community? Does your job include a free / heavily discounted apartment?
My income is about 25K total and that's only if I sell stuff online AND work with my mother during tax season or some other side job.
My company offers a 25% discount. Not bad but could be better considering they don't offer any sort of commission or bonus, like most rental companies do. However, I bought my house with an FHA loan (which is how I purchased it with no money down) so in order to rent out my house and move out of it, I would have to refinance. But like I said, the house needs a little updating first. That's my goal for next year.
You're right in that your biggest obstacle is probably income. Now how to fix that...
Your mortgage is very low, suggesting you live in an area that doesn't offer all that many high-paying jobs. I know you just bought a house, but could you consider getting a higher-paying job if it requires moving? You might look into a higher position at a company somewhere else.
This is my ultimate goal! But as I stated above I need to be in a position to refinance.
Thank you so much to everyone for your encouragement! I know I need to be patient. I'm not doing too bad but am so eager to take it to the next level. Part of my problem has always been that I am just all over the place. "I could go back to school or I could take sewing classes or I could get this certification or la di da di da." I can't determine which route to take, what would work out best for me and take me the furthest while still allowing me to be content with life. It's obviously more of a psychological barrier than anything. I can't sort my thoughts enough to figure out what will take me to where I want to be. I want so badly to retire early and I never even thought about it until I started reading MMM last year. I know I can't do it on 25k/yr.