So I bought a house where I’m stationed at. Is it wise to put extra payments towards the house even though I expect to sell it once I PCS in a couple of years?
@indi7 No. Instead, but that overage into a savings account. Don't sell your current house - espeically if you're nearby a base. Unless you put money down or are located in an area that has had crazy appreciation in the last couple of years, you probably don't have much equity, and most of that could be eaten up by realtor fees and other seller closing costs.
Hire a management company and use the hosue as an investment vehicle. You can use your V.A. entitlement to purchase another home - you can have 2 opens loans at the same time (sometimes 3) - so there's no urgent need to capture equity from the home you're departing.
You'll never find a human being in this country that's ever gotten a note from their landlord that he's lowering the rent. Just do some easy projections on what that property would look like for you in 10 years. The equity you'd have and the rent you'd be collecting. You may start out with zero cash flow, but that will change over time. When you retire, you'll have a paid for money-making machine that will put several thousand dollars in your pocket every month.
Yes, there can be some challenges, but it'll be worth it as long as your management company is doing a good job of screening tenants.
@indi7 There's a fundamental concept of principal vs interest. do a quick study on what an amortization table is, hopefully that helps your decision. also, real estate is a lucrative business. you can do all the right things, pay on time, pay extra on the mortgage, and market value can still affect your situation. are you trying to sell this property for profit?
