07-17-2020, 04:50 PM
So finally got an offer worth giving up the remote worker life for. Kind of ironically it's remote due to COVID until the end of the year at least. Have to relocate to Charlotte at some point this year though. This means I'm free to hunt for a house across a pretty big area for the next 5 months, awesome. But I have to be under contract with my current home in order to use my full VA loan eligibility, not awesome. I was debating putting this here or the MoneySports thread but I think the same few people are in both.
Now here's my big plan: refinance my current VA loan (4.625%) into a conventional loan (~3%). I owe just under 310k on the house and it's now worth around $350-360k so might have to throw some down to avoid PMI but not much. The bank is crazy enough to let me do it and also "put down any offer I want" in a similar price range for the new VA loan. The plan is to list this house on AirBnb, it got a lot of attention when I was renting just the room and nothing but 5 star feedback on the location/setup. Looking at comparable rentals I could easily get $250-300/night and most likely have it booked nearly every weekend. It definitely has the curb-appeal to make it happen. Now I could live without the rental income/profit but I don't really want to hand over a house that just made $20k two years in a row especially with HQ2 opening up in Arlington in the near future. I know Massanutten is a little far out to feel a lot of that effect but people are going to want convenient weekend get-aways for sure.
So why am I posting this here? I'm a moron with my money and I want a bunch of opinions. This feels like a decent move but also feels risky. The housing market dips and I could be double-screwed without a decent cushion built up. On the other hand I need to start doing something with my money and this feels better than the stock market. A lot less homework but a lot more maintenance. At the end of the day it just feels better to me to have real tangible assets.
Thoughts? Concerns? Insults?
Now here's my big plan: refinance my current VA loan (4.625%) into a conventional loan (~3%). I owe just under 310k on the house and it's now worth around $350-360k so might have to throw some down to avoid PMI but not much. The bank is crazy enough to let me do it and also "put down any offer I want" in a similar price range for the new VA loan. The plan is to list this house on AirBnb, it got a lot of attention when I was renting just the room and nothing but 5 star feedback on the location/setup. Looking at comparable rentals I could easily get $250-300/night and most likely have it booked nearly every weekend. It definitely has the curb-appeal to make it happen. Now I could live without the rental income/profit but I don't really want to hand over a house that just made $20k two years in a row especially with HQ2 opening up in Arlington in the near future. I know Massanutten is a little far out to feel a lot of that effect but people are going to want convenient weekend get-aways for sure.
So why am I posting this here? I'm a moron with my money and I want a bunch of opinions. This feels like a decent move but also feels risky. The housing market dips and I could be double-screwed without a decent cushion built up. On the other hand I need to start doing something with my money and this feels better than the stock market. A lot less homework but a lot more maintenance. At the end of the day it just feels better to me to have real tangible assets.
Thoughts? Concerns? Insults?