Hello, everyone. I’ve been camping and RVing since the mid-70s and am a member on several RV-related forums. However, this is my first post on RV-Dreams.
My wife and I are struggling with the decision about whether or not to full-time. (OK – she’s struggling… I am much more willing.) Here’s the situation (please bear with me – but you need the background to respond intelligently): I am retired Army and plan to retire from my civilian job in February, 2015. I will be 62 and my wife 57. My wife is a former teacher but did not retire (she has rolled several IRAs into one account and will be eligible for Social Security when she is of age). With my retirement income(s), Social Security, and a decent sized annuity from a life insurance policy on my late wife, we will be comfortable – but not wealthy. We own a modest home (only four years into the mortgage but have some equity), a 2009 Corolla that’s paid for, and a 2013 Sierra 2500HD DuraMax with about $12K left to pay on it. We also own a 2013 Surveyor Sport 220 travel trailer that’s paid for.
Other than the above major items, the physical things that mean the most to us are mostly the few things that we’ve acquired as a couple since we married (a little over 5-1/2 years ago). Among these are two pieces of Ekornes furniture (can go in a fiver), a very nice entertainment center and a TempurPedic adjustable bed (neither of the latter are fiver candidates).
At this point, our plan is to spend several months on the road next year with the travel trailer we have to see if the lifestyle is really something we would enjoy and could tolerate. If the answers are, “Yes,” that would open the door to transitioning to the full-time lifestyle.
Our (my wife’s) major concerns fall into two main categories (and I’m a sub-part of one of them). They are:
1)We have well-established relationships with primary care providers we both really like (I’ve been with mine since leaving active duty more than 20 years ago). My response to this is that we can arrange to be back in the area once a year for the obligatory annual check-ups (we’re both pretty healthy for our ages) and the Tricare prescription service works with full-timers all the time to get their meds to them wherever they are. Tricare also allows for emergency care wherever we might need it.
2)Our home/storage of important items/exit plan. (This is where I’m part of the problem.) We love our home, but we haven’t been in it long enough to have a strong emotional attachment (this might be partially due to me being Army and moving around and my wife was born and raised on the foreign mission field and was a missionary as an adult… we don’t have one place that we’re particularly attached to). The house, though, is a very attractive option for an exit plan. We can’t afford to maintain the house as a residence AND travel full-time – and here is where I become part of the problem. A logical mind might say, “Just turn the house over to a property management company and rent it out.” Unfortunately, I’m not psychologically wired to be a long-distance landlord (and probably not a landlord at all, for that matter). Also, if we were to rent the house, we still couldn’t store our few things there. On the other hand, rentals in the area are going for several hundred dollars above what our mortgage (with escrow) is, so I guess we could use the difference for a small, climate-controlled storage space.
Am I just being anal about renting the house? Do any of you have experience with renting your homes – and if so, how did it turn out? My wife thinks I’m a worrier (and she’s probably mostly right about that). To me, a full-time plan would involve combining the proceeds from the sale of the house (the equity) with the proceeds from selling the travel trailer to pay cash for a suitable fifth wheel. I do see a problem with this in terms of an exit plan in that we would be putting our liquid assets (and future down payment on another house) into a depreciating RV. Does anyone see other options for us and have a suggestion (I’m open to therapy…)? I’m sure many have gone through similar struggles when considering this life-changing move.
Thanks!
Rob
TRAILERKING said
10:00 AM May 23, 2014
Welcome.......................and like your name, Second Chance
Second Chance said
10:15 AM May 23, 2014
TRAILERKING wrote:
Welcome.......................and like your name, Second Chance
Thanks, Trailerking. You've probably already guessed why, but I am blessed to have found my second wife after being widowed. She's a wonderful person. Now... why is your handle "Trailerking" with a motorhome for an Avatar?...
Rob
TRAILERKING said
10:40 AM May 23, 2014
TOPIC: How'd you come up with your handle?
Go into this thread........It explains everything. You should put your explanation in there also.
-- Edited by TRAILERKING on Friday 23rd of May 2014 10:41:21 AM
-- Edited by TRAILERKING on Friday 23rd of May 2014 10:41:57 AM
Jack Mayer said
10:42 AM May 23, 2014
Any RV is a depreciating asset and should be viewed as "the cost of the adventure". If you cannot afford the loss of depreciation of that asset then you cannot afford the cost of RVing. I know that sounds a little harsh put that way, but it is the way it is. If you cannot be comfortable with the loss of that asset value (or most of it) then you will never be comfortable with RVing - fulltime or extended time.
One of the virtues of the fulltime lifestyle is the simplification of "stuff". Keeping the stuff - to me - is counter productive to the fulltime lifestyle. Something to consider as you make your plans. STUFF is easily replaced if you decide to abandon the fulltiming. If you find that is extremely traumatic to you or your wife you need to carefully consider if fulltiming is a suitable lifestyle. Most people we know that keep "stuff" in storage regret it. But of course, if you abandon fulltiming after only a short time that might work well....
You seem to understand yourself well and know that renting would not work for you. I would follow your instincts. If you are always worrying about the house fulltiming will not be enjoyable. There are LOTS of houses out there....and since you do not have excess equity in your current one, and have lived a nomadic lifestyle in the past I would probably be inclined to let it go....after, of course, you come to terms with the other aspects of fulltiming and know it is for you. Fulltiming is not for everyone....I think your extended tripping is a good start. But be aware that as a fulltimer you are likely to have more space in your RV than in the TT.
Barbaraok said
12:41 PM May 23, 2014
If you can comfortably afford a payment, don't put the proceeds from the sale of the house into purchasing the RV, rather keep some in investments and use current income to fund your purchase. We had funds in IRAs that would have generated a large tax bill, so we kept them working in the market and covered our RV payment from our current income streams. Everyone's tolerance for carrying some debt is different.
No way would we try and be a distant landlord - been there, done that, it was horrible.
We still use our physician in our old home town. Stop once a year. We will probably transition to new ones this year because we have become very comfortable in spending our winters in the same place.
Take pictures of your stuff, so you can remind yourself of the memories, then get rid of them. Stuff is just that - Stuff. Don't let it rule you!
Reread what Jack said about 'cost of the adventure'. The memories we've generated in the past 8 years are priceless. When we can no longer travel, and are sitting in our rocking chairs, we have tens of thousands of pictures to relive our time on the road.
Barb
-- Edited by Barbaraok on Friday 23rd of May 2014 07:37:26 PM
Technomadia said
05:27 PM May 23, 2014
Having an exit plan is a wise idea.. especially as you're much closer to retirement age than we are. Obviously, our decision points are going to be different as a result.
When considering what to do with your house, here's some questions to ask yourself - what is the likelyhood that when/if you're ready to come off the road that this is the house & area of the country you'll want to settle back down at? Do you have community or family ties there that would bring you back to the area? If you sold your home and did want to return, would you be able to purchase another home suitable for you later in the area?
A lot of nomadic folks we meet end up discovering new areas of the country that they start thinking about settling down at 'someday'. They connect with new people and form new communities, and they lose their connections to old areas they came from. People they loved there move away, or they loose touch with them.
Given your statements that you don't look forward to being a long distance landlord, and you're not emotionally attached to the house - I would be seriously considering selling the house, bank some of that cash to use for purchasing a home in the future and finding a way to afford an RV that will suit you well for your adventures. If you've not RV'd before, keep in mind that after a year or so on the road, you may find you want to switch RVs to match the lifestyle you discover out there (or get off the road entirely). So try to avoid getting 'underwater' with your purchase and financing situation if you can to retain flexibility.
And I also concur with Jack that if you're not comfortable with a depreciating asset like an RV, that's something to seriously consider.
For storage.. we had a unit for a while, and after 8 years on the road, we finally returned back to it and disposed of it and most things in it. So very freeing to finally get that expense and anchor off our backs.
Best wishes,
- Cherie
bjoyce said
07:58 PM May 23, 2014
We could not afford to have both an RV and a house, so we dumped the house. We do not regret it. If we settle down it will be in another area, and will be a smaller and easier place to maintain.
Terry and Jo said
08:28 PM May 23, 2014
A similar topic was discussed at the following linked thread:
As somewhat mentioned in a previous answer, in traveling, you might very well find an area of the country where you would rather live than your current area. You would be surprised as to the differences in costs in living in different areas. I think it was the same thread above where it was mentioned that in some areas, the property taxes on a home could be in excess of $1000 a month, while we had a 2250 sq ft home on 3/4 of an acre (before selling to get our RV) that cost only about $2400 per year here in Oklahoma.
One can also find that the people of an area and the living costs with regards to fuel and food to be a lot less as well.
By the way, thanks for your service, and for your wife's sacrifices as well.
Terry
Camper Chronicles said
06:52 AM May 24, 2014
I would like to answer this in a slightly different way. For me it is not so much about your specific decisions...they will vary from couple to couple and frankly any choice the two of you make is ok. For me when I read your post it's more about being committed. It is VERY common for one partner to be ahead of the other and even once you have decided to go back and forth in your mind about whether it is the right choice.
So here's my advice...never forget you don't have to do this. It is a choice and can be made when both of you are ready. I also strongly recommend you go to one of Howard's rally's so your wife can meet others in person in the same transition stages. It made a world of difference for me as Lee was 100 percent committed early on but it took me longer.
One last thing..I totally respect concerns about primary care physicians. This was a major concern for me and I still have not quite worked it out in my mind. Some keep the same home state and fly home once aytear for physicals etc. that is definitely an option. Many folks sort of gloss over healthcare as an issue and I can tell you the number one factor in the quality of care you receive is your relationship with your primary care provider. I have spent years developing a relationship with mine and am very concerned about starting over with someone else. Unfortunately NH just won't work for us as a home state so ultimately I will have to give that relationship up. We did pick Texas though as our new home state In no small part because I have a family member who is a physician there. It truly is a valid concern on her part and should be a major part of your discussions.
Just my two cents :)
Tracy
-- Edited by Lee and Trace on Saturday 24th of May 2014 06:52:46 AM
-- Edited by Lee and Trace on Saturday 24th of May 2014 06:53:13 AM
-- Edited by Lee and Trace on Sunday 25th of May 2014 04:42:29 AM
-- Edited by Lee and Trace on Sunday 25th of May 2014 04:46:48 AM
Second Chance said
10:28 AM May 24, 2014
Thanks for the great feedback and personal insight, everyone. My wife and I are already discussing your responses and formulating a bullet list of things to talk about and do (like have a talk with a realtor and our financial advisor about the house). The suggestions that we may find another part of the country in which to settle are quite germane and we've even discussed what each of us would do if something happened to the other while we were on the road. My response here is not to cut off further discussion - to the contrary. Please "keep those cards and letters coming!" I merely wanted to say thanks to those of you who have spoken up already.
Rob
WestWardHo said
04:55 PM May 24, 2014
This is a really good discussion and I appreciate EVERY response to your post - they are all thoughtful responses.
To me, the number one attribute to enjoy this lifestyle is flexibility. Number 2 might be patience or a sense of humor, I can't decide which is most important. This lifestyle is about change on everything possible you can imagine. From changes on/to your RV, to changes on your location to changes on your expectations, to changes of weather, to changes on things you THINK you'll need, to changing fuel and food costs around the country. To meeting new friends and quickly becoming attached to them.
I think it's important to have funds to exit after a year if either of you find out it's not for you or for whenever. Equally or more important are health insurance funding. You may well find someplace along the way that is better suited for your exit plan. My husband did not want to have the worry about keeping our home and I understood that so we sold it last year. Today, for health reasons, fortunately we're buying it back. But in the interim we found an Escapees Co-op in California that we fell in love with that we thought we'd make our home base. The cool thing about that co-op is we get our money back when we sell, no appreciation and no depreciation.
We did do the storage unit thing for only some of our possessions. Our thinking was we'd have to keep it for 3 years before the break even point came and we'll end up being 1.5 years.
But things change, you evolve, plan as you might - life happens. You'll figure it all out and enjoy the process. There is NO right way to do this, just trust your each and individual instincts and go for it! 😄
Sherry
Jo and Ben said
05:59 PM May 24, 2014
Welcome to the forum! I think it's great that you are looking into all of the aspects of the choice to full-time in such depth. As has been said above, what you decide to do is what is right for you, there is no one right way. We can all tell you what we think, or what we have decided, but either way it's based on our own perspectives and not necessarily what's right for you.
We talked and talked and talked about how to go about doing this. We also wrestled with the decision of whether or not to sell the house. Ultimately, we decided that the downsides of renting out our house were not worth it (what if they trash it and we have to spend lots of money to fix it up again, what if they don't pay their rent and we are stuck with the mortgage payments without the rental income, etc. etc.). We ended up taking out a loan for the RV. We spent part of the money from the equity from the house to pay off some debt, and saved some as a backup (exit plan or otherwise). We are fortunate because we are both RNs and can work on the road, so we weren't worried about having to pay bills while full timing.
We got rid of most of our stuff, but did rent a small storage unit for some things that just had to be kept (grandma's china, etc.). The rent on the smallest size unit is only $40 per month where ours is located. We brought our Tempurpedic mattress in the RV, but sold the frame and box spring.
The good news is, whatever you decide to do, you can always change your mind! Take your time, keep thinking and talking about it, and don't forget to listen to your hearts and not just your heads :)
Good luck!
Aurora Borealis said
11:57 PM May 24, 2014
Thanks for starting this great discussion!
I would like to let you know that some people have great results with renting long-distance. I own 3 houses outright and they are managed by 2 property management companies. I have had a great experience with this.
First off, I always get personal references if possible when hiring any professional. I always do extensive online research about the company, read reviews, and call each company to ask a list of questions. I compare a minimum of 3 companies carefully. It can be very enlightening. Mine belong to a national association, will add the name next post.
I think it would be good for you to consider whether your house is in an area that you expect to have good appreciation. And also whether your current loan on it has good terms. I would recommend doing a projection of a year's income/expenses. I will add the name of the best book for this in a following post. When you discuss this with your accountant, you will also want to discuss the capital gains ramifications, if you do not live in it for 3 years, then sell it, likely capital gains taxes would be due.
You may very well be able to build a solid storage shed on a rock base for your belongings if you had alley access to it. Depends on whether you would recoup the cost when sold.
I agree with you about concerns of taking out a loan for an asset that will depreciate.
WestWardHo said
07:03 AM May 25, 2014
Just a PS about both needing to be on the same page. For two years before we made the final decision to full time I was reading this forum & journal as a lurker. We had a different RV at the time and would go on trips and I would say, "I don't want to go home, let's go full time." Then we'd get back to the house and I'd say, "I love this house, we're getting older and this is where I'd want to live when we can't travel anymore." Then we'd talk about maybe parking our rig somewhere when that time came and using it as our second home or doing both and renting out the house. Back and forth we went. Jesse would say to me, "Would you please tell me if we're going to go full time or not!?" Then we went to a Rally......
As we've said before our only mild regret is not doing it sooner but as so many say, this life is NOT for everyone so both parties should be on the same page. If it takes you a couple of years to decide, so be it.
Sherry
DEWhit said
12:48 AM May 26, 2014
Second Chance,
We are also taking the steps to making the transition to a more retired status and are doing research on the RV lifestyle and the equipment we will use for the initial entry. I cannot offer any hard advice from experience there yet.
I can comment on the home rental idea as we have been renting out homes we own for many years.
Without knowing your financial particulars, you are only four years into a mortgage with some limited equity(?) and that is not the best situation to have in a long term plan for property rental, especially if the property is not specifically set up as a rental. There is a big difference in a cash flow rental house and property that is being put up for rental by a homeowner. You can set up a house for rentals thru the years, but it is expensive to do upfront and without experience. Different paint, floorcoverings, appliances, lighting, exterior landscaping, landlord insurance, liability umbrella, tax considerations, etc.
Property managers make money by keeping someone in the property and collecting rent. Period. No tenants means no rent which means no commissions. That is at the heart of outside property management. You may have tenants you would not have chosen that meet the criteria of the mgmt company. You WILL have maintenance issues. That is a fact. Many things will happen at odd hours and weekends and holidays. The costs of outside maintenance and repairs and turnover expense are usually what lead to failure by many property owners. No one will take care of your property like you will and no one will check them out as thoroughly as you will. Outside mgmt. and maintenance eat up most of the profits on a single property under mortgage.
The rental business is best entered into as a investment of your time, money and personal participation if you actually want to make money. Sadly, many that do it as an alternative to selling or as outside managed single properties usually wind up taking losses. Everyone thinks rentals are easy, but it is a fulltime job and the more you can do yourself, the better for your cash flow.
We are now marketing our houses to sell and streamline our entry into a more relaxed lifestyle that hopefully will include fulltime RV travel.
There is no way that I could travel any distance and ever really relax with rentals under outside management.
-- Edited by DEWhit on Monday 26th of May 2014 12:54:54 AM
-- Edited by DEWhit on Monday 26th of May 2014 12:56:27 AM
-- Edited by DEWhit on Monday 26th of May 2014 12:57:11 AM
Second Chance said
04:05 AM May 26, 2014
Thanks again, everyone. My wife wanted me to respond on her behalf. She is amazed that people will take the time to read through my long original post and then to offer lengthy, well thought out responses. She used the term "a different caliber of people" while formulating what she wanted to say. She says it is really helping her gain a sense of the types of people who become full-time families. She is impressed with the compassion and caring that are evident in your responses. As she reads the various forums on RV-Dreams, she likened the community to what she experienced growing up as an M.K. ("Missionary Kid") and later as an adult on the mission field - people who may not always be located near each other, but who form friendships (even bonds) that endure over time. For my part, you have GREATLY helped my cause! Thanks again!
Rob (for Laura)
Camper Chronicles said
06:09 AM May 26, 2014
Laura these are absolutely the nicest people (in aggregate) I have ever met in my life. Partly I think it takes a special kind of person to think this far out of the norm...partly we are all dreamers and actually are trying to do something about those dreams. That seems to make us kinder to each other. No matter what you decide or how long it takes you this is a great place to hang out :)
Jo and Ben said
07:30 AM May 26, 2014
Ditto what Trace said. There are some wonderful people on this forum, and they are just as wonderful when you meet them in person! At the rally I was amazed by how warm, caring and accepting people were. I have never felt so immediately welcomed and befriended before! Welcome to the club :)
Hello, everyone. I’ve been camping and RVing since the mid-70s and am a member on several RV-related forums. However, this is my first post on RV-Dreams.
My wife and I are struggling with the decision about whether or not to full-time. (OK – she’s struggling… I am much more willing.) Here’s the situation (please bear with me – but you need the background to respond intelligently): I am retired Army and plan to retire from my civilian job in February, 2015. I will be 62 and my wife 57. My wife is a former teacher but did not retire (she has rolled several IRAs into one account and will be eligible for Social Security when she is of age). With my retirement income(s), Social Security, and a decent sized annuity from a life insurance policy on my late wife, we will be comfortable – but not wealthy. We own a modest home (only four years into the mortgage but have some equity), a 2009 Corolla that’s paid for, and a 2013 Sierra 2500HD DuraMax with about $12K left to pay on it. We also own a 2013 Surveyor Sport 220 travel trailer that’s paid for.
Other than the above major items, the physical things that mean the most to us are mostly the few things that we’ve acquired as a couple since we married (a little over 5-1/2 years ago). Among these are two pieces of Ekornes furniture (can go in a fiver), a very nice entertainment center and a TempurPedic adjustable bed (neither of the latter are fiver candidates).
At this point, our plan is to spend several months on the road next year with the travel trailer we have to see if the lifestyle is really something we would enjoy and could tolerate. If the answers are, “Yes,” that would open the door to transitioning to the full-time lifestyle.
Our (my wife’s) major concerns fall into two main categories (and I’m a sub-part of one of them). They are:
1) We have well-established relationships with primary care providers we both really like (I’ve been with mine since leaving active duty more than 20 years ago). My response to this is that we can arrange to be back in the area once a year for the obligatory annual check-ups (we’re both pretty healthy for our ages) and the Tricare prescription service works with full-timers all the time to get their meds to them wherever they are. Tricare also allows for emergency care wherever we might need it.
2) Our home/storage of important items/exit plan. (This is where I’m part of the problem.) We love our home, but we haven’t been in it long enough to have a strong emotional attachment (this might be partially due to me being Army and moving around and my wife was born and raised on the foreign mission field and was a missionary as an adult… we don’t have one place that we’re particularly attached to). The house, though, is a very attractive option for an exit plan. We can’t afford to maintain the house as a residence AND travel full-time – and here is where I become part of the problem. A logical mind might say, “Just turn the house over to a property management company and rent it out.” Unfortunately, I’m not psychologically wired to be a long-distance landlord (and probably not a landlord at all, for that matter). Also, if we were to rent the house, we still couldn’t store our few things there. On the other hand, rentals in the area are going for several hundred dollars above what our mortgage (with escrow) is, so I guess we could use the difference for a small, climate-controlled storage space.
Am I just being anal about renting the house? Do any of you have experience with renting your homes – and if so, how did it turn out? My wife thinks I’m a worrier (and she’s probably mostly right about that). To me, a full-time plan would involve combining the proceeds from the sale of the house (the equity) with the proceeds from selling the travel trailer to pay cash for a suitable fifth wheel. I do see a problem with this in terms of an exit plan in that we would be putting our liquid assets (and future down payment on another house) into a depreciating RV. Does anyone see other options for us and have a suggestion (I’m open to therapy…)? I’m sure many have gone through similar struggles when considering this life-changing move.
Thanks!
Rob
Thanks, Trailerking. You've probably already guessed why, but I am blessed to have found my second wife after being widowed. She's a wonderful person. Now... why is your handle "Trailerking" with a motorhome for an Avatar?...
Rob
TOPIC: How'd you come up with your handle?
Go into this thread........It explains everything. You should put your explanation in there also.
http://rv-dreams.activeboard.com/t57417061/howd-you-come-up-with-your-handle/
-- Edited by TRAILERKING on Friday 23rd of May 2014 10:41:21 AM
-- Edited by TRAILERKING on Friday 23rd of May 2014 10:41:57 AM
One of the virtues of the fulltime lifestyle is the simplification of "stuff". Keeping the stuff - to me - is counter productive to the fulltime lifestyle. Something to consider as you make your plans. STUFF is easily replaced if you decide to abandon the fulltiming. If you find that is extremely traumatic to you or your wife you need to carefully consider if fulltiming is a suitable lifestyle. Most people we know that keep "stuff" in storage regret it. But of course, if you abandon fulltiming after only a short time that might work well....
You seem to understand yourself well and know that renting would not work for you. I would follow your instincts. If you are always worrying about the house fulltiming will not be enjoyable. There are LOTS of houses out there....and since you do not have excess equity in your current one, and have lived a nomadic lifestyle in the past I would probably be inclined to let it go....after, of course, you come to terms with the other aspects of fulltiming and know it is for you. Fulltiming is not for everyone....I think your extended tripping is a good start. But be aware that as a fulltimer you are likely to have more space in your RV than in the TT.
If you can comfortably afford a payment, don't put the proceeds from the sale of the house into purchasing the RV, rather keep some in investments and use current income to fund your purchase. We had funds in IRAs that would have generated a large tax bill, so we kept them working in the market and covered our RV payment from our current income streams. Everyone's tolerance for carrying some debt is different.
No way would we try and be a distant landlord - been there, done that, it was horrible.
We still use our physician in our old home town. Stop once a year. We will probably transition to new ones this year because we have become very comfortable in spending our winters in the same place.
Take pictures of your stuff, so you can remind yourself of the memories, then get rid of them. Stuff is just that - Stuff. Don't let it rule you!
Reread what Jack said about 'cost of the adventure'. The memories we've generated in the past 8 years are priceless. When we can no longer travel, and are sitting in our rocking chairs, we have tens of thousands of pictures to relive our time on the road.
Barb
-- Edited by Barbaraok on Friday 23rd of May 2014 07:37:26 PM
When considering what to do with your house, here's some questions to ask yourself - what is the likelyhood that when/if you're ready to come off the road that this is the house & area of the country you'll want to settle back down at? Do you have community or family ties there that would bring you back to the area? If you sold your home and did want to return, would you be able to purchase another home suitable for you later in the area?
A lot of nomadic folks we meet end up discovering new areas of the country that they start thinking about settling down at 'someday'. They connect with new people and form new communities, and they lose their connections to old areas they came from. People they loved there move away, or they loose touch with them.
Given your statements that you don't look forward to being a long distance landlord, and you're not emotionally attached to the house - I would be seriously considering selling the house, bank some of that cash to use for purchasing a home in the future and finding a way to afford an RV that will suit you well for your adventures. If you've not RV'd before, keep in mind that after a year or so on the road, you may find you want to switch RVs to match the lifestyle you discover out there (or get off the road entirely). So try to avoid getting 'underwater' with your purchase and financing situation if you can to retain flexibility.
And I also concur with Jack that if you're not comfortable with a depreciating asset like an RV, that's something to seriously consider.
For storage.. we had a unit for a while, and after 8 years on the road, we finally returned back to it and disposed of it and most things in it. So very freeing to finally get that expense and anchor off our backs.
Best wishes,
- Cherie
A similar topic was discussed at the following linked thread:
Does Anyone Besides Us Have a Problem with This
As somewhat mentioned in a previous answer, in traveling, you might very well find an area of the country where you would rather live than your current area. You would be surprised as to the differences in costs in living in different areas. I think it was the same thread above where it was mentioned that in some areas, the property taxes on a home could be in excess of $1000 a month, while we had a 2250 sq ft home on 3/4 of an acre (before selling to get our RV) that cost only about $2400 per year here in Oklahoma.
One can also find that the people of an area and the living costs with regards to fuel and food to be a lot less as well.
By the way, thanks for your service, and for your wife's sacrifices as well.
Terry
I would like to answer this in a slightly different way. For me it is not so much about your specific decisions...they will vary from couple to couple and frankly any choice the two of you make is ok. For me when I read your post it's more about being committed. It is VERY common for one partner to be ahead of the other and even once you have decided to go back and forth in your mind about whether it is the right choice.
So here's my advice...never forget you don't have to do this. It is a choice and can be made when both of you are ready. I also strongly recommend you go to one of Howard's rally's so your wife can meet others in person in the same transition stages. It made a world of difference for me as Lee was 100 percent committed early on but it took me longer.
One last thing..I totally respect concerns about primary care physicians. This was a major concern for me and I still have not quite worked it out in my mind. Some keep the same home state and fly home once aytear for physicals etc. that is definitely an option. Many folks sort of gloss over healthcare as an issue and I can tell you the number one factor in the quality of care you receive is your relationship with your primary care provider. I have spent years developing a relationship with mine and am very concerned about starting over with someone else. Unfortunately NH just won't work for us as a home state so ultimately I will have to give that relationship up. We did pick Texas though as our new home state In no small part because I have a family member who is a physician there. It truly is a valid concern on her part and should be a major part of your discussions.
Just my two cents :)
Tracy
-- Edited by Lee and Trace on Saturday 24th of May 2014 06:52:46 AM
-- Edited by Lee and Trace on Saturday 24th of May 2014 06:53:13 AM
-- Edited by Lee and Trace on Sunday 25th of May 2014 04:42:29 AM
-- Edited by Lee and Trace on Sunday 25th of May 2014 04:46:48 AM
Rob
To me, the number one attribute to enjoy this lifestyle is flexibility. Number 2 might be patience or a sense of humor, I can't decide which is most important. This lifestyle is about change on everything possible you can imagine. From changes on/to your RV, to changes on your location to changes on your expectations, to changes of weather, to changes on things you THINK you'll need, to changing fuel and food costs around the country. To meeting new friends and quickly becoming attached to them.
I think it's important to have funds to exit after a year if either of you find out it's not for you or for whenever. Equally or more important are health insurance funding. You may well find someplace along the way that is better suited for your exit plan. My husband did not want to have the worry about keeping our home and I understood that so we sold it last year. Today, for health reasons, fortunately we're buying it back. But in the interim we found an Escapees Co-op in California that we fell in love with that we thought we'd make our home base. The cool thing about that co-op is we get our money back when we sell, no appreciation and no depreciation.
We did do the storage unit thing for only some of our possessions. Our thinking was we'd have to keep it for 3 years before the break even point came and we'll end up being 1.5 years.
But things change, you evolve, plan as you might - life happens. You'll figure it all out and enjoy the process. There is NO right way to do this, just trust your each and individual instincts and go for it! 😄
Sherry
We talked and talked and talked about how to go about doing this. We also wrestled with the decision of whether or not to sell the house. Ultimately, we decided that the downsides of renting out our house were not worth it (what if they trash it and we have to spend lots of money to fix it up again, what if they don't pay their rent and we are stuck with the mortgage payments without the rental income, etc. etc.). We ended up taking out a loan for the RV. We spent part of the money from the equity from the house to pay off some debt, and saved some as a backup (exit plan or otherwise). We are fortunate because we are both RNs and can work on the road, so we weren't worried about having to pay bills while full timing.
We got rid of most of our stuff, but did rent a small storage unit for some things that just had to be kept (grandma's china, etc.). The rent on the smallest size unit is only $40 per month where ours is located. We brought our Tempurpedic mattress in the RV, but sold the frame and box spring.
The good news is, whatever you decide to do, you can always change your mind! Take your time, keep thinking and talking about it, and don't forget to listen to your hearts and not just your heads :)
Good luck!
I would like to let you know that some people have great results with renting long-distance. I own 3 houses outright and they are managed by 2 property management companies. I have had a great experience with this.
First off, I always get personal references if possible when hiring any professional. I always do extensive online research about the company, read reviews, and call each company to ask a list of questions. I compare a minimum of 3 companies carefully. It can be very enlightening. Mine belong to a national association, will add the name next post.
I think it would be good for you to consider whether your house is in an area that you expect to have good appreciation. And also whether your current loan on it has good terms. I would recommend doing a projection of a year's income/expenses. I will add the name of the best book for this in a following post. When you discuss this with your accountant, you will also want to discuss the capital gains ramifications, if you do not live in it for 3 years, then sell it, likely capital gains taxes would be due.
You may very well be able to build a solid storage shed on a rock base for your belongings if you had alley access to it. Depends on whether you would recoup the cost when sold.
I agree with you about concerns of taking out a loan for an asset that will depreciate.
As we've said before our only mild regret is not doing it sooner but as so many say, this life is NOT for everyone so both parties should be on the same page. If it takes you a couple of years to decide, so be it.
Sherry
Second Chance,
We are also taking the steps to making the transition to a more retired status and are doing research on the RV lifestyle and the equipment we will use for the initial entry. I cannot offer any hard advice from experience there yet.
I can comment on the home rental idea as we have been renting out homes we own for many years.
Without knowing your financial particulars, you are only four years into a mortgage with some limited equity(?) and that is not the best situation to have in a long term plan for property rental, especially if the property is not specifically set up as a rental.
There is a big difference in a cash flow rental house and property that is being put up for rental by a homeowner.
You can set up a house for rentals thru the years, but it is expensive to do upfront and without experience.
Different paint, floorcoverings, appliances, lighting, exterior landscaping, landlord insurance, liability umbrella, tax considerations, etc.
Property managers make money by keeping someone in the property and collecting rent. Period.
No tenants means no rent which means no commissions. That is at the heart of outside property management.
You may have tenants you would not have chosen that meet the criteria of the mgmt company.
You WILL have maintenance issues. That is a fact. Many things will happen at odd hours and weekends and holidays.
The costs of outside maintenance and repairs and turnover expense are usually what lead to failure by many property owners.
No one will take care of your property like you will and no one will check them out as thoroughly as you will.
Outside mgmt. and maintenance eat up most of the profits on a single property under mortgage.
The rental business is best entered into as a investment of your time, money and personal participation if you actually want to make money. Sadly, many that do it as an alternative to selling or as outside managed single properties usually wind up taking losses.
Everyone thinks rentals are easy, but it is a fulltime job and the more you can do yourself, the better for your cash flow.
We are now marketing our houses to sell and streamline our entry into a more relaxed lifestyle that hopefully will include fulltime RV travel.
There is no way that I could travel any distance and ever really relax with rentals under outside management.
-- Edited by DEWhit on Monday 26th of May 2014 12:54:54 AM
-- Edited by DEWhit on Monday 26th of May 2014 12:56:27 AM
-- Edited by DEWhit on Monday 26th of May 2014 12:57:11 AM
Rob (for Laura)