Rent Or Buy?
I am on deployment with the U.S. Marines right now overseas. I have been studieing REI but I have a dilema. I will be getting back in a few months and I want to start my investing career. I am debating if I should waste money on renting when I get back for me and my wife or buy, hold, rent while I am renting or buy for my self (owner occupied) than relocate with a new property than rent the old one? 
Being a landlord is sometimes time and labor intensive. If you are planning a military career, will you relocate soon (or often)? If so, then long-distance makes landlording a little more difficult..
You can overcome the absentee owner problems by hiring a professional property manager, but this reduces your cash flow. If you still have a positive cash flow with professional management, then rental property may be a good tax shelter for your other income as well.
I suggest you use your VA entitlement to purchase your first property -- your own home. Get out of base housing, or stop renting on the economy. When you relocate, turn your residence into a rental property under professional management. Purchase another home for yourself in your next location, using conventional financing, then turn it into a rental when you move again.
This does two things for you. First you get the benefits of homeownership and an appreciation of the costs of maintaining a property. You get to know the contractors in your area and this gives you time to interview property management companies to see if landlording will be profitable for you.
Second, you get into landlording slowly. Not everybody has the temperment for landlording. If the first rental property does not work well for you, you can always put the property on the market and sell it -- perhaps even sell it to your tenant. Because you will have already lived in the property, and already know the property values for the area, you will have a fairly good idea of a fair price for your property should you need to sell.
As a matter of fact I get out next year in late July. I want to start my investment career. You are right about the economy part, I dont want to pay any more to the government than I need too.
Thanks for replying!!
Dave T is right devil dog. Use your VA no money down benefit whenver you can.
It's the one true No money down program that is given to vets. I did what you are planning to do(rent), and save to buy. I wish I never would have waited to buy. I didn't know the VA loan was so beneficial.
Buy a home as soon as you can. I know California is expensive, I used to live there myself(La Puente and San Diego), but find a way to get into a home as quickly as you can.
Semper Fi,
Beau
Hey there killer!
Thats good to hear well you can probably tell what my rank is right? Well I am planning to get a loan from my VA but the only thing that is stopping me is my credit. I did some foolish financial mistakes when I was younger but I am not going to let that stop me though.
Any advice?
How is future for you right now?