Author Topic: What Should I Do Next?  (Read 2898 times)

Grimreaper

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What Should I Do Next?
« on: May 27, 2013, 12:14:35 AM »
Hello Everyone,

In February I took a new job. My job is a permanent on the road job with hotels and travel paid and a food per diem. Basically if I didn't own a house I'd only have a cellphone bill each month. Instead I have a mortgage with property tax,water&sewer and heat and hydro bills each month as well.

Next week I'll be able to pay off the last of $13,000 in CC and LOC debt. My question for you is what would you do next? Here's the options as I see them:

1. Invest pretty much everything I make for retirement and let the house sit there empty.
2. Fix the house up so it's rentable and rent it...expected cost $20k +/-(which I'd have to borrow)
3. Rent it free to someone willing to do the work and I pay the supplies.
4. Sell the house and invest whatever I may have left over(maybe 20-30k..house in rough shape)
5. I had a 5th but can't remember right now :(

Some personal info:

Income: so far avg. $2000 after taxes every 2 weeks

Savings/Emergency Fund: approx. $2000 after I pay off the last debt *edited after rechecking
Investments: just the house worth 80k I figure even in current condition/owe $55k
Mortgage&Property Tax: $515/month
Water&Sewer: $60/month (min. charge since no one there right now)
Heat: $50/month(avg over year)
Hydro: $80/month(avg over year)
House Insurance: $56/month
Van: paid off/off the road as well since not home to use
Cellphone: $64/month(unlimited everything basically...not giving up only lifeline away from home)

So what would you do next????

« Last Edit: May 27, 2013, 12:37:29 AM by Grimreaper »

Khan

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Re: What Should I Do Next?
« Reply #1 on: May 27, 2013, 12:41:43 AM »
I would find out what the house rents out for, and make a determination if it's worth keeping or not from that and the estimated maintenance costs you think you'll need on it). I dunno much about the renting for free option, but I'd imagine that would be a rather small subset of people on Craigslist.

Then, I'd max 401k contributions(but aim to max over the course of the year), accumulate ~5k in cash and keep it as cash/invest(however you want to play, consider this your emergency fund[adjust your emergency fund as necessary]), make sure to fund the 5.5k for your ROTH IRA for this year[deadline Apr '14), and possibly sell the van as you no longer need it and do not know when you will need it.

marty998

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Re: What Should I Do Next?
« Reply #2 on: May 27, 2013, 01:40:12 AM »
Sell the house if you're sure this job is for you. But no use in selling and then figuring out you don't like the permanent travel after 3 months or so.

Fix it up and rent it out. The rent will pay for the renos after a year and a bit. You should get some cap gain out of it too. Or if you are going option 1 then at least think about maybe putting a family member/friend in there for reduced rent? If only to have someone in there watching the place while you travel.

Grimreaper

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Re: What Should I Do Next?
« Reply #3 on: May 30, 2013, 10:52:02 PM »
Sorry about taking so long to respond but I've been away from civilization since my original post.

Thanks for your advice. Selling the house this early into the new job could be a big mistake!

I'm looking into the 2 fixing it up options now. I'll try and let you know how things go.

On top of that I'll be setting up my work RRSP deal next week. Probably have them take 25% off the top for it. They match up to 6% of gross so maybe an extra $3-5000/year!

Catbert

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Re: What Should I Do Next?
« Reply #4 on: May 31, 2013, 01:19:10 PM »
I agree, don't sell the house until you've had the job a bit longer.  It may not last out the year. Permanent on-the-road gets old very quickly.  In the meantime I'd look into getting a roommate which is a better option than letting the house sit vacant.  They can pay half of what a similar house would rent for plus all the utilities.  If the job doesn't work out or you just take a break for a couple of weeks you have a home to go back to.




notmyhand

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Re: What Should I Do Next?
« Reply #5 on: May 31, 2013, 02:17:27 PM »
My fiance and I are also constantly on the road in a similar situation.  For the first two years, we rented out the basement of our house for a little less than apartments in the area were going for just to have someone in the house as we were gone for long periods of time.  We still enjoyed having the house for the weekends we were able to go back.  Recently we just sold it to take a few months to put together a large downpayment for a house closer to the areas we are working in.  I wish I could say we would be okay with living on the road forever but unfortunately we will be buying another house as there is nothing like the feeling of being home, having a place for your things, and letting the dogs run.  Plus I know we won't want to work on the road forever.  While we are putting out downpayment together, we are also making sure we fund out IRAs and our Individual 401ks (we are independent contractors).  Best of luck!

Grimreaper

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Re: What Should I Do Next?
« Reply #6 on: November 15, 2013, 11:41:37 PM »
Thanks for all the replies. I promised an update so here goes:

I was leaning towards selling the house and just when I was going to start contacting real estate agents my sister found me a tenant. This was surprising as the house is in rough shape. So thanks to my sister the house is rented out and thanks to my tenants the house will be getting fixed up when they have time. So it's turned out pretty good...thanks to my sister aka my new property manager!