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ArmyofOne

Moving Time! I Just Got Orders...

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Spc (P) Morrison,

You are hereby ordered to report for active duty to Fort Lewis, Washington, NLT 28 Jan 2011...

Words I have been waiting FIVE YEARS to read. I am leaving the dump they call Fort Drum FOREVER.

Where are the Washington Residents? Show a guy around?

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DUDE! right here!

Thats sweet!

Given, I'm a couple hours aways from there... lol I couldn't show you around there very well hahah. I'm up here on the olympic peninsula.

Maybe check out a forum Me and some friends started up here.

www.opmotoring.com We're open to ALL vehicle enthusiasts trapped out here! haha

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DUDE! right here!

Thats sweet!

Given, I'm a couple hours aways from there... lol I couldn't show you around there very well hahah. I'm up here on the olympic peninsula.

Maybe check out a forum Me and some friends started up here.

www.opmotoring.com We're open to ALL vehicle enthusiasts trapped out here! haha

You and me are DEFINATELY hooking up when we get there. Meghan and I are considering an OUTRIGHT home purchase, mostly thanks to NC211 (telling me to save all my money worked, looking at close to 128,000 in the bank by the time we move ;)). It will be nice to own a home, no car payment and no debt to speak of at age 25. :D

Trapped? Its paradise out there. I LOVE the pacific coast. I have a suspiscion that once I get Meghan there, she will never want to leave.

The only thing that is scaring me, is the drive through the rockies/cascades in the dead of winter in a Honda Civic with all season goodyears...help.

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Well check out Mr. Trump over here! 25 years old with 6 figures sitting in the bank! I'd have to say, you're way ahead of the curve now!! If I may make just one more suggestion on the house thing....find one you would want to buy, but ask to rent it instead for about a year, then decide if you really want to buy it. That's what we did here in Chicago, and I can't tell you how happy I am for doing that! Army, you're a military guy, which means you're probably going to be issued similiar orders to move again over the next 5 years or so. Home values, although showing signs of life again, are still either falling, or flat and on shaky ground. Just over the past 12 months where I live, values have fallen yet another $30k. It's so bad, tax assessors can't justify anything BUT to lower the taxable values of people's homes here, something you don't see in good times, or even marginal times, just bad times. If you KNOW you're going to be out there in Washington for a least 5 years, then I'd be ok with buying a home. But if you don't know with a certain degree of certainty that you're going to be there for that length of time, then proceed with caution. The last thing you want to face in a year or two is orders to move again, holding a $130k house that's only worth $100k then, and in a tough market to sell it in.

But, if you do buy, I wouldn't blow entire cash nestegg. I'd use some leverage. Don't think I'd use my VA certificate just yet, but maybe a FHA loan, of say 50% of the purchase price? I suggest FHA, because if I recall from my National City Mortgage days several years ago, FHA loans have an "assumable" clause in them. That little clause could be gold for you if you have to sell the house in an inflationary environment. Basically, you're selling a house with an assumable 5% mortgage on it, in a 10% lending rate environment. Folks won't just focus on the house at that point, but the fact that their primary mortgage would be lower then what they could go get at the bank. But talk to someone about this first, as I'm not 100% sure if the program is still intact and what provisions have changed.

Secondly....buy a friggin' umbrella!! 'Cause it rains in the PNW!! But, beautiful, just simply beautiful country! We've done some deals a bit further up in Victoria, Canada, that are just stunning! Oh, and no Grey's Anatomy crap either when you get there. If you find your world sounding like an episode of that show when you get there, then switch down to decaf from one of the bazillion Starbucks!!

I am praying that I get a similiar request as you have here, for Washington, DC over the next few months. We'd love to be back in the mid-atlantic region of the country, especially by the time baby #2 comes in November - which we think is a girl! If there is one city/region in this world that has survived this economic meltdown the best, it is without a doubt, Washington, DC. Heck, they're running out of Condos down there!! And they're actually starting to build/convert them again! Infact, a Miami Condo Developer flew up to DC a couple of months ago and bought a brand new building that the previous owner lost (foreclosed) for a price that wasn't even seen two years ago! He paid what is considered to be a below 5% Cap Rate return on his money (basically earning less than 5% on his investment). What does this tell you? Well, DC is the place to be! Just ask SWO, he knows!!!

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Well check out Mr. Trump over here! 25 years old with 6 figures sitting in the bank! I'd have to say, you're way ahead of the curve now!! If I may make just one more suggestion on the house thing....find one you would want to buy, but ask to rent it instead for about a year, then decide if you really want to buy it. That's what we did here in Chicago, and I can't tell you how happy I am for doing that! Army, you're a military guy, which means you're probably going to be issued similiar orders to move again over the next 5 years or so. Home values, although showing signs of life again, are still either falling, or flat and on shaky ground. Just over the past 12 months where I live, values have fallen yet another $30k. It's so bad, tax assessors can't justify anything BUT to lower the taxable values of people's homes here, something you don't see in good times, or even marginal times, just bad times. If you KNOW you're going to be out there in Washington for a least 5 years, then I'd be ok with buying a home. But if you don't know with a certain degree of certainty that you're going to be there for that length of time, then proceed with caution. The last thing you want to face in a year or two is orders to move again, holding a $130k house that's only worth $100k then, and in a tough market to sell it in.

But, if you do buy, I wouldn't blow entire cash nestegg. I'd use some leverage. Don't think I'd use my VA certificate just yet, but maybe a FHA loan, of say 50% of the purchase price? I suggest FHA, because if I recall from my National City Mortgage days several years ago, FHA loans have an "assumable" clause in them. That little clause could be gold for you if you have to sell the house in an inflationary environment. Basically, you're selling a house with an assumable 5% mortgage on it, in a 10% lending rate environment. Folks won't just focus on the house at that point, but the fact that their primary mortgage would be lower then what they could go get at the bank. But talk to someone about this first, as I'm not 100% sure if the program is still intact and what provisions have changed.

Secondly....buy a friggin' umbrella!! 'Cause it rains in the PNW!! But, beautiful, just simply beautiful country! We've done some deals a bit further up in Victoria, Canada, that are just stunning! Oh, and no Grey's Anatomy crap either when you get there. If you find your world sounding like an episode of that show when you get there, then switch down to decaf from one of the bazillion Starbucks!!

I am praying that I get a similiar request as you have here, for Washington, DC over the next few months. We'd love to be back in the mid-atlantic region of the country, especially by the time baby #2 comes in November - which we think is a girl! If there is one city/region in this world that has survived this economic meltdown the best, it is without a doubt, Washington, DC. Heck, they're running out of Condos down there!! And they're actually starting to build/convert them again! Infact, a Miami Condo Developer flew up to DC a couple of months ago and bought a brand new building that the previous owner lost (foreclosed) for a price that wasn't even seen two years ago! He paid what is considered to be a below 5% Cap Rate return on his money (basically earning less than 5% on his investment). What does this tell you? Well, DC is the place to be! Just ask SWO, he knows!!!

Well, i see your point, and we are going to get military quarters (free) for the first year at least, to see if we like/get a feel for the area. I LOVE that part of the country though. I grew up in Alaska...and while not quite so stunningly beautiful, Sea/Tac area comes in at a close second.

We may end up driving a 17' Uhaul with a car trailer on the back. If we do that, we will be coming through chicago...any chance of a home cooked meal NC? I dont want to invite myself, but ya never know if you dont ask!

128,000 took us YEARS to get. I have been saving since I was 16. Meghan has been saving since 18. When we got married at ages 20/21, we waited a year and decided to pool our funds and tuck them away, invested with USAA. After 28 months in combat (every penny going in there) and Meghan doing part time work here and there, we have saved and saved. That and being careful to not get into debt, and live within our means, helped alot.

Now the kicker. The army is gonna pay me $22,500 to drive a u-haul from Fort Drum to Fort Lewis. The Uhual, car trailer, insurance, and gas is gonna set me back roughly $5,000. So we just made a MASSIVE profit.

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Hey man...thats great!

But do not pay cash for the house IMHO. You as a veteran have an incredible thing at your disposal...a VA loan. Many people think that once you use your VA loan (I think this is what nc thinks) its gone forever but thats not true. Once you pay it off, be it by selling the house and doing that or just by paying it off, you can use it again...over and over again for your whole life. Terms are great, 0% down. No reason to tie up all your cash.

FHA loans are assumable in theory, but the buyer still has to be approved for the loan. Plus lets say you buy a house for $150,000 and you get a $100,000 FHA loan on it. Well, when you sell it lets say its worth $175,000. You would have to find a buyer who has $75,000 plus closing costs to assume it, or you'd have to depend on subordinate financing being available again at the time which is 100% is not now. So assumable in theory...

But I agree with nc, be sure you're going to be there 5 years before you buy otherwise you should rent.

It is nuts here in DC...I am literally so busy I don't have time to even think...

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Hey man...thats great!

But do not pay cash for the house IMHO. You as a veteran have an incredible thing at your disposal...a VA loan. Many people think that once you use your VA loan (I think this is what nc thinks) its gone forever but thats not true. Once you pay it off, be it by selling the house and doing that or just by paying it off, you can use it again...over and over again for your whole life. Terms are great, 0% down. No reason to tie up all your cash.

FHA loans are assumable in theory, but the buyer still has to be approved for the loan. Plus lets say you buy a house for $150,000 and you get a $100,000 FHA loan on it. Well, when you sell it lets say its worth $175,000. You would have to find a buyer who has $75,000 plus closing costs to assume it, or you'd have to depend on subordinate financing being available again at the time which is 100% is not now. So assumable in theory...

But I agree with nc, be sure you're going to be there 5 years before you buy otherwise you should rent.

It is nuts here in DC...I am literally so busy I don't have time to even think...

hmmm...I see your points. both very good ones. yes I know the VA loan can be used again and again, but I was not aware of the FHA issues. I see the problem.

I think I will keep the cash tucked away safely earning interest/benefits, and Live in military housing as long as I can :)

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I wouldn't neccesarily do that either...a home over time is a great investment but its not a short term investment. If you buy a home and then sell it 10+ years down the line you're going to be really happy you did. But if you buy one and sell it 3 years down the line...thats going to suck.

If I were you I would determine if I were going to be in the house for 5+ years, and buy it with nothing down. Keep the cash invested and growing, write the interest off.

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yes. We were looking at one online, (i have to go find the link, dammit) it was a rent to own type deal. Price on the home was $220,000. 2300sq ft, corner lot, 2 car garage, built in 2002. It was a military special, you could rent for $900 a month (if you were military) and at the end of the 1 year lease, if you decided to buy, The payments would be applied to the price of the home.

Not sure how that would work, maybe the landlord puts the rent payments into an escrow account or something? Who knows?

But hopefully we can get a deal like that.

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You should make a trip out to La Push. Right on the coast. Gorgeous out there.

It's about 1.5hrs west of where I live.

Hey great plan! I just bought a house, paid off all my credit cards. All I have left now is my car and the house. Now to save save save.

Any chance you listen to Dave Ramsey?

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In my experience rent-to-own simply doesn't work.

Here's how a traditional rent-to-own scenario works.

You and the owner decide on a sales price right now. There is a unilateral option where you can exercise it and purchase the house. If you elect to purchase it for the option price, the sales price you agreed upon when you signed the lease, the owner must sell it to you.

Traditionally there is rent that is paid monthly...then an amount of option money. So if your rent was $1,500 per month (forgive the amounts, everything is more expensive here) then there would be say $500 in option money that is held in an escrow account bringing your total payment to $2,000 per month. At the end of say, 12 months you have built up $6,000 in "option money". If you elect to exercise your option and purchase the house...then the $6k goes towards the house...or closing costs...or whatever.

Here's the kicker...if you don't exercise the option...the money belongs to the owner.

The reason there is rent and then option money is the seller is paying the debt service and taxes on the house while you're renting...so there needs to be something coming to the owner to cover those costs otherwise he is loosing money.

So whats the issue? Well how do you know whether the option price is going to be a fair value for the house 12 months from now? What if it has depreciated? If it has and you elect not to exercize the option...you forefit the money. What if its too low and the house has appreciated over those 12 months? Well then the owner has made a bad deal...thats why the option prices are usually way higher than market value.

What if you choose the option and the house doesn't appraise? You could loose the option money if an appraisal clause wasn't in the original agreement.

Just wrought with consequences. You're much better off to rent...and continue to save. I refuse to let any of my clients do a rent-to-own scenario...buyers or sellers.

Even if the whole rent truly does go towards the house if you buy it in full...you still are choosing to live there instead of free military housing...and if you dont buy the house you loose the $10,800 for the rent you paid over that year.

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PenskeTruck.JPG

Its official. We reserved the truck and trailer today! Total comes to $3,079.xx for the truck/trailer, 28 days/unlimited miles. Still a fantastic deal. Diesel FTW! 50 gallon tank, 10mpg w/load, =500 miles per tank. That means we go from Fort Drum NY, to Fort Worth TX, and then on to Fort Lewis WA, on 8 tanks of fuel (at $200 a piece on average...OUCH!)

jcrome: Dave Ramsey is my idol!

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[quote name='ArmyofOne' date='05 April 2010 - 06:

We may end up driving a 17' Uhaul with a car trailer on the back. If we do that, we will be coming through chicago...any chance of a home cooked meal NC? I dont want to invite myself, but ya never know if you dont ask!

Josh, I would more than welcome you guys into our home for a home cooked meal. However, the only "home cooked" anything that occurs in our house, is the diaper gennie, if you catch my drift "which, trust me, you don't want any of that drift!" However, I would me more than proud to buy a friend, and one of this country's finest, and his wife, a nice meal of anywhere of your choosing! No arguments on who's paying, this one is on me.

But, let give you a little heads up first....AVOID Chicago proper! Since the DOT didn't do a thing last summer, they're all out in force this year and have the highways under construction like you can't believe. I think it's best summed up by a guy in my office who commutes from downtown out to the western burbs where our office is: "290 and 355 make Southern Manhattan look like Charlotte Motor Speedway". Don't bring that Uhaul through here, if you can avoid it. Try to route along the southern edges of town. Take a look at your map and let me know what route you're thinking, and when you're thinking of being through these here yankee parts! Oh, and don't forget the Garmin!!!

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thanks NC! We are still not sure if we are going to go that route, or if we are going to go to TX to visit my family. Going to Fort Worth with the rig will make the move cost $5,500 total (fuel included), over 30 days. But I will get to see my mom, dad, and brother, whom I have not seen since before I deployed. The other way (coming through/by chicago) will only cost us $3,000/10 days. Its going to depend on what happens over the next few months, but I will keep you posted. And yes, our Garmin never gets left behind! LOL.

Alot of this is also going to depend on whether I can get my orders changed to a late summer/early fall report date. If we are going in the winter (as of now) we will almost certianly have to take the southern route...as driving a 22' rig with a car on a trailer through the Cascade/Rocky Mountains in the middle of winter is almost entirely out of the question.

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Diesel FTW! 50 gallon tank, 10mpg w/load, =500 miles per tank. That means we go from Fort Drum NY, to Fort Worth TX, and then on to Fort Lewis WA, on 8 tanks of fuel (at $200 a piece on average...OUCH!)

Congrats on the move Josh!

I'd rethink that 10mpg. I know that's what Penske tells you, but I just used a 26' Penske Freightliner to move. It got a little more than 7mpg and that's without towing a car carrier. It didn't seem really windy, and it's not that hilly either. Perhaps my truck needed some work? My diesel bill was almost 2x the rental fee. Mine was limited to 65 mph, so you go nowhere fast. The ride was truly abysmal too (actually it was something far worse than abysmal), so much so that the CD player was nearly worthless because each minor imperfection in the road would make it cut for 5-10 seconds. I was ecstatic to drop this thing off. I never did stop for breaks. Once I climbed up in to the bridge, I wasn't coming out until I reached the destination. It wasn't fun, but I did 6 hours at a time. The bumps just killed me. And, how none of my stuff broke, I'll never know.

I was 45 minutes late to pick up my truck, so I was left with the !Removed! of the fleet. The Caterpillar engine ran great (a 7.2l I6 I believe), but the rest of the truck was falling apart (the abs light would come and go, the passenger's side mirror was held on with a rope, part of the rubber floor was gone, almost no weather stripping was left on the windows, there were some holes in the floor in the box container, it took forever for the air to build up past 100psi to release the brakes for the first time after starting, etc.). It only had 276k miles, but it felt more like 676k miles. Had I not been in a time crunch, I would have just told them never mind. It was a manual transmission too, kind of felt like a real truck driver. lol The Penske guy gave me 25% off because it was a manual. Luckily, the lift gate worked because I wouldn't have been able to move without it since I moved out by myself.

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Diesel FTW! 50 gallon tank, 10mpg w/load, =500 miles per tank. That means we go from Fort Drum NY, to Fort Worth TX, and then on to Fort Lewis WA, on 8 tanks of fuel (at $200 a piece on average...OUCH!)

Congrats on the move Josh!

I'd rethink that 10mpg. I know that's what Penske tells you, but I just used a 26' Penske Freightliner to move. It got a little more than 7mpg and that's without towing a car carrier. It didn't seem really windy, and it's not that hilly either. Perhaps my truck needed some work? My diesel bill was almost 2x the rental fee. Mine was limited to 65 mph, so you go nowhere fast. The ride was truly abysmal too (actually it was something far worse than abysmal), so much so that the CD player was nearly worthless because each minor imperfection in the road would make it cut for 5-10 seconds. I was ecstatic to drop this thing off. I never did stop for breaks. Once I climbed up in to the bridge, I wasn't coming out until I reached the destination. It wasn't fun, but I did 6 hours at a time. The bumps just killed me. And, how none of my stuff broke, I'll never know.

I was 45 minutes late to pick up my truck, so I was left with the !Removed! of the fleet. The Caterpillar engine ran great (a 7.2l I6 I believe), but the rest of the truck was falling apart (the abs light would come and go, the passenger's side mirror was held on with a rope, part of the rubber floor was gone, almost no weather stripping was left on the windows, there were some holes in the floor in the box container, it took forever for the air to build up past 100psi to release the brakes for the first time after starting, etc.). It only had 276k miles, but it felt more like 676k miles. Had I not been in a time crunch, I would have just told them never mind. It was a manual transmission too, kind of felt like a real truck driver. lol The Penske guy gave me 25% off because it was a manual. Luckily, the lift gate worked because I wouldn't have been able to move without it since I moved out by myself.

meh, even if we average 5mpg, we are still going to have more than enough to cover it.

Boy i hope they dont do anything like that to me! They said all of their trucks in the fleet at my location are 2010's and they are getting 15 2011's in in the fall...I dunno, we will see. Hopefully it works out the way we want it to. Where did you move to?

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