Author Topic: Job relocation questions  (Read 928 times)

Uturn

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Job relocation questions
« on: November 17, 2017, 08:30:44 PM »
I have been offered an opportunity to relocate from Ft Worth, TX to Raleigh, NC.  We are still working out the compensation package.  For the sake of this conversation, let's say that is all worked out.  My next concern is my house.  I owe $83k, it's worth about $220k, it would rent for about $1800, PITI is $1100.  I have enough in non-tax advantaged accounts to pay it off.  I would rent in NC. It is just me, no SO or offspring.   

Rent or sell current house?  Rental management company is 10% of annual rent. 
If I sell current house, what do I do with the money?  Let's say FI is 5 years and equity would purchase a blue water sailboat.
What is standard for relocation?  X number of months company paid to find a new place?  How about moving expenses?
Stuff that I don't want to take, mostly furniture items and tools.  Have a garage sale, or individual on Letgo or Nextdoor?

kasperle

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Re: Job relocation questions
« Reply #1 on: November 17, 2017, 08:55:49 PM »
Hey, congrats on the possible new job! Moving is exciting. I moved for a job about 2 years ago.

The house sounds like it might cash flow, which would make it a great property to hold onto. You should run more calculations to see if itís likely that it would. People spend a lot of time trying to find homes that cash flow! You might be lucky enough to already nearly own one.

If I sell current house, what do I do with the money?  Let's say FI is 5 years and equity would purchase a blue water sailboat.

I canít recommend that you buy a blue water sailboat, unless thatís a cute name you use to refer to your favorite index fund.

What is standard for relocation?  X number of months company paid to find a new place?  How about moving expenses?

This probably depends on how well the company is doing, how important your role is, and/or your compensation. Iím in a senior role at a Silicon Valley Tech Giant, and they covered the move, put me in an apartment for one month (I could have stayed longer, but would have had to pay rent), and paid for a realtor to take us around to a bunch of homes for 1 day. One of those homes is the one that we ended up renting.

Is this standard? I have no idea, but my guess is that this is on the higher end of what a company provides. My typical expectation for a company is that they would not pay for anything.

Stuff that I don't want to take, mostly furniture items and tools.  Have a garage sale, or individual on Letgo or Nextdoor?

You may need to do both. Try to sell the most valuable items in a garage sale / on Craigslist. In the final days leading up to the move, use Craigslist free or do whatever you can to get rid of anything thatís left.

Uturn

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Re: Job relocation questions
« Reply #2 on: November 18, 2017, 07:49:10 PM »
Spoke with a property manager, who is also a real estate broker.  today.  My estimate of $220k is what her comps show.  She says other houses in my neighborhood bring in around $1900.  However, they are in a rather undesirable school district, my house is in a very desirable district.  My street is the dividing line between the two districts. If this works out, I am leaning toward renting the house with her a a full property manager.  Money being fungible, I can either consider the cash flow as offsetting my rent in NC, or extra into savings/investing. 

kasperle

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Re: Job relocation questions
« Reply #3 on: November 18, 2017, 10:46:31 PM »
Nice! Once the mortgage is completely paid off, it'll be free and clear and then it'll really bring in some extra cash :)