I have $40,000.00 saved up and I have a few ideas of what to do with it. I was hoping some of the older wiser guys on here might be able to advise me on a smart way to use it. Now, i'm only 22, and I know what sounds like a good idea or "fun" right now, probablly wont sound so great in a year, two years, and so on. First off, being in California, everything is probablly mind boggling expensive to what most of you are used to. So one possibility in any scenario is taking that money to another state and purchasing something that would have me set for life ( I remember a 2 story log cabin with acreage and ponds for 80K in KY)
Option 1; Go purchase a few acres outright. I like the area in Nevada county. Continue renting where i'm at (or elsewhere) while slowly building up. If push comes to shove I have acreas to live primitively-ish on with tents and generators, build up to a crappy trailer. I can start saving for a house I want , first foundation....one step at a time for however long it takes. Like I said, staying where i'm at would hopefully be how it happened- the tent thing would just be there as a safety option should I suddenly have no income. This way I OWN something, all I have to worry about is yearly property taxes. I must admit this is kind of my dream. The only con I see is if I find work somewhere else and now I own property in another state that just sits there, and that moneys gone.
Option 2; Purchase a house. With a 40K down payment I could have realitively small payments. I could rent it out covering my payments, perhaps even generating a little monthly profit income. This sounds cool to me, having other people paying for my house while i'm off doing other things. I could perhaps improve on it and sell it if and when the market comes up. But I see a lot of risks in this. I'm 22, I don't know the first thing about being a landlord and perhaps don't want to. It sounds like a lot to take on. I would flip my lid if I found someone destroying my house or had to deal with douche bag renters. I also worry about not being able to find renter, having my income disappear, and losing it.
Option 3; Sit on it. This way it goes nowhere. It stays there until i'm older, perhaps with a steady job (Firefighter/Paramedic, may have to be willing to move to another state to get hired...) then I can make a decision. What worries me about this is the market raising back up to where a tiny garbage house is 200-$300,000.00 and I could have one paid off and worth that.
Any tips, suggestions,ideas, criticisms, jokes, haikus, whatever, are appreciated. Thanks for reading.
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