Alright I know it's been a minute but I felt like righting something about finances without posting it on facebook, yet I feel it should be posted.
I'm so tight with money and numbers, yet I spend frivolously on Amazon. This write-up is more so about making your money work for you....
When you move/live somewhere you have a financial decision to make. Buy or Rent. How many years will you live in the area? If it's a military assignment for three years, is it worth the money to buy and fly? One year I wouldn't advice unless there is a chance you'd like to fix-up and sale or invest as a rental since interest rates are sooo low you'd take the chance of a vacancy at 5.5% CAP.
So if you rent, good for you. You have your reasons. This write-up is for owners and if you're prior military then def keep reading on.
I got out of the Army as an E-1/PVT. Something about unsatisfactory performance and disrespecting NCOs. I know! Can you imagine!?! Moi! A smart mouth?! With little respect for morons! It's quite shocking and if you know me well enough you can read the facial expressions on my face. Anyways I got out with full benefits minus the bloody MGIB (education money - those fkcers). Sashayed away, cried on a bed of contractor cash in Kuwait and of course loved supporting the Army and having the officers and senior NCOs come to me for guidance (See how we all would've got along had you recognized royalty from the getco?!?). I digress...I got out, applied for unemployment right away (which wasn't far off from an E-1s pay lol), had my dad fill out my paperwork for VA Disability and was granted 10% for tinitus, still battling for my legs (up me to 40% please).
Why is it important to file for disability homebuyers/refinancers? That's right! DISABLED VETS PAY NO FUNDING FEE! (let that marinade and if you don't know what that's worth think around $10k). I've refinanced 3 or 4 times. I can't keep track....My loan started at 5% and is now down to 3.25%.
I've lived in my house three years and am back at the 30year start...but the difference is over $300 a month in savings, loan still lower than I started and this loan actually gave me around $5000 in my pocket! That's right! I didn't come out of pocket, I made bank and still lowered my payments.
I live in a real nice townhouse and pay about $1612 a month. 2BR apartments cost more than this, plus at the end of the year, albeit small (3.25%) I will write off the interest I paid on taxes. Will I stay here forever? No, the plan is to move down to San Diego in 5-10 years and keep this place as a rental. $1950 minus management fee (10%) will pocket me about $100 p/mo, build equity and still take that tax writeoff. Negative side - when a tenant moves out ur at 100% vacancy. That sucks, makes me miss the 4plex days.
I love numbers and if any of you guys need a hand, I have a fantastic spreadsheet where you can fill in the blanks of all your numbers & goals.