Creative Mortgage Budgeting

[LittleRock]

If I didn't even have $4k saved, I wouldn't be thinking about quitting my job to go hiking.

Especially not with the potential for having to end early because of a family emergency.

Just my $0.02.

[trailmercury]

If I didn't even have $4k saved, I wouldn't be thinking about quitting my job to go hiking.

Especially not with the potential for having to end early because of a family emergency.

Just my $0.02.

post deleted, I misquoted the OP

[stephanD]

You own a house, you have a job, you are young and healthy. Be happy. Do sections. The trail is not going anywhere.

[Slumgum]

The "landlord" experience can be a joy or a nightmare. If you have to take a tenant to court just know that you will be portrayed as "the slum lord" and considered guilty until proven innocent. The tenant holds all the cards no matter that they have torn the place up and paid no rent for the last 4 months. It is all about thorough history checks and a large damage deposit. Make sure you get someone in your property who is reputable be it short or long term.

[Hikingjim]

It's a gamble, but I wouldn't rule out renting it or using airbnb.
For rental, you'd have to be confident in the tenant. Eg: if it's a professional that needs a short-term rental and they have fantastic references, etc, then maybe the risk is worth it.
For airbnb, it's all about having a local person manage it that you fully trust. If you don't, you can't do it.

I don't know about insurances/regulation where you live, but I rented out a townhouse we owned, and insurance was actually a lot higher when my place was vacant than when I had tenants in it. That might be party because it's a colder climate here though (risk of pipes freezing, etc, with vacant property)

[One Half]

Add to that, how does someone who "owns rental properties" not have tens of thousands banked in case the rentals unexpectedly need major repairs.


Might just sell the rentals to fund the hike?

He never said he "owns rental houses." He actually appears to only own his current home and just earns enough "to get by" but has managed to save up $5k towards a hike.

As for having "10s of thousands" socked away IF he had rentals, for issues that could come up with the rentals, it would be stupid business practice to use any of that for a hike or other personal expenses unless an exteme disaster happened.

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[trailmercury]

He never said he "owns rental houses." He actually appears to only own his current home and just earns enough "to get by" but has managed to save up $5k towards a hike.

As for having "10s of thousands" socked away IF he had rentals, for issues that could come up with the rentals, it would be stupid business practice to use any of that for a hike or other personal expenses unless an exteme disaster happened.

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I went ahead and deleted the post, since I was mistaken that the OP had rental properties. ( it was a subsequent poster. beefsmack), my bad!

[Berserker]

In terms of cash, I have a good start on savings right now ($5k) so the hike itself isn't a as big a problem as the mortgage.

This is really just semantics, but I would argue that the hike itself is a big problem. When I budget for something I include every expense that needs to be covered. So in your case if you don't have a way to cover the mortgage (i.e. renter or some other arrangement), then this is part of your hike budget. So you'd need $5k + 6 months of mortgage + 6 months of utilities.

I'm not saying this to be a smart arse, I'm just pointing out that it's human nature to talk oneself into things and not be realistic. At any rate, I hope you figure something out and have a good hike. I am a huge supporter of taking advantage of an opportunity when one presents itself, and it surely sounds like this may be the case for you attempting a thru hike.

[4eyedbuzzard]

...My wife is a realtor and someone is always looking for a short term (3-6 month) rental while their new house is getting finished or they sold their own house to a cash buyer and it closed much sooner than expected. Or call any large corporations in your area and see if they have people coming in for work for a short period of time. A good friend has a small rental house which he rented to the US Coast Guard. They put their own people in it who were here on temporary duty. They had very high standards and most of the time, there was no one in it but he still got a check every month from the Coast Guard.

You still need someone who can take the call for when the dishwasher breaks or a window sticks but, if you can get everything working properly before you depart, it could work for you. Keep us posted on how this works out for you.

This is likely one of the best options for renting it out. Contact a local Realtor and tell them your situation. They often know responsible people directly or through other Realtors or builders that are in these types of situations needing a short term rental. If you can get a 6 month lease, worse case is your hike ends early and you camp out at your parents until the lease is up.

[evyck da fleet]

This is really just semantics, but I would argue that the hike itself is a big problem. When I budget for something I include every expense that needs to be covered. So in your case if you don't have a way to cover the mortgage (i.e. renter or some other arrangement), then this is part of your hike budget. So you'd need $5k + 6 months of mortgage + 6 months of utilities.

I'm not saying this to be a smart arse, I'm just pointing out that it's human nature to talk oneself into things and not be realistic. At any rate, I hope you figure something out and have a good hike. I am a huge supporter of taking advantage of an opportunity when one presents itself, and it surely sounds like this may be the case for you attempting a thru hike.

To add on, I also budget for how long I think I’ll be out of work when I get back and before I can find a job. The last thing I want to think about when I’m hiking is how I’m going to pay bills.

[One Half]

To add on, I also budget for how long I think I’ll be out of work when I get back and before I can find a job. The last thing I want to think about when I’m hiking is how I’m going to pay bills.

I think lots of people miss this step. It's part of our plan when we eventually hike the long trails unless we wait until retirement.

[stephanD]

In 2015, I quit my job in order to thru hike. I asked for a leave of absence, but i was denied. I was comfortable doing it because I had enough funds to finance (A) rent and bills for at least one full year, (B) pay for health insurance out of pocket for at least one full year, (C) 5-6 months hiking including gear replacement (e.g. I had to buy a new backpack in NY) and finally (D) whatever life may throw at you and it unexpected. In my case it was a knee injury which took me off the trail and kept me practically bed bound for next three months. I quit my job in May 1st(I attempted to flip-flop), the trail in mid July, and by the end December i was working again. So i was out of work a total of about eight months. If the OP plans to quit his job, and does not have enough funds to finance himself and his financial obligations for at least six - seven months, he risks to find himself homeless/jobless. I understand it his his dream, because it was my dream too, but one has to be realistic on how to accomplish their dream without ruining themselves financially. Now i do sections whenever i have the time off.

[lonehiker]

Or you could take out a home equity loan.

$3500 over 5 years would almost certainly be under $100 per month.

Would that be a wise financial decision? Probably not for most people, but then again neither is quitting one’s job to take a hike.

That said, we don’t t know you — it could be a wise life decision

Don't finance your hike. This is really bad advice.

In regards to renting; you can hire a company to handle that for you. Where I live they charge 10% of the rental rate but handle everything for you.

Best option for you might be to delay your trip a year or two and save the money. You managed to save 5K, just keep plugging away at it.

[trailmercury]

Don't finance your hike. This is really bad advice.

yes, very bad advice...the trail isn't going anywhere, save longer to cover every expense of the house sitting empty.

[PatmanTN]

FWIW, there are also property management groups that will handle as much of the rental process as you are willing to pay them to. I have a co-worker that used such a company and I think he said the company he used required first months rent and then 10% of the rent each month. They found and vetted tenants, managed the eviction process when needed, handled payment transactions etc.. He also mentioned that he could have prearranged repairs with them that would have been withheld from future rent payments but discovered he could coordinate repairs less expensively than them.

[illabelle]

We have some rental property. There certainly are risks, but they're not unmanageable. I like the traveling nurse idea, and the idea of getting a realtor to handle things for you.
The roommate idea is great IF you have the right person. He/she has to be someone you trust a lot.
My husband and I section hike, which works for us. Overall, section hiking is more expensive, even if it's spread out over several years. But it does allow us to keep our jobs.
Something I didn't see addressed above is what your plan is for your parents while you're on the trail. Maybe they don't need you just yet?

[pesphoto]

do what I'm about to do...sell it, its just a roof with walls and a door.

[rickb]

yes, very bad advice...the trail isn't going anywhere, save longer to cover every expense of the house sitting empty.

Every person’s situation is different.

Time is the most precious asset.

Leaving a good career track, financing a car (never did never will) and failing to sieze the moment may be far more of a risk for some individuals.

Why is it that many of the same people who would not take issue with a young person taking out a 60 month (or longer) car loan, or taking on private college debt for a generic college experience, would not ever consider financing a thru hike?

One thing about hiking and travel experiences — once you have them nobody can take them away.

[Berserker]

Every person’s situation is different.

Time is the most precious asset.

Leaving a good career track, financing a car (never did never will) and failing to sieze the moment may be far more of a risk for some individuals.

Why is it that many of the same people who would not take issue with a young person taking out a 60 month (or longer) car loan, or taking on private college debt for a generic college experience, would not ever consider financing a thru hike?

One thing about hiking and travel experiences — once you have them nobody can take them away.

This is wise counsel rickb. As I have gotten older I have come to realize just how precious time really is, and you are right that you cannot put a price on one's time and/or good health. So I don't recommend one be reckless and go into massive debt to hike, but if one were to do things responsibly and have a good plan for afterwards then I agree that financing some of it would not be a crazy idea. As a section hiker I also don't disagree with the "trail ain't going anywhere" advice, and to thinking outside the box and maybe consider sectioning rather than a thru.

[trailmercury]

Why is it that many of the same people who would not take issue with a young person taking out a 60 month (or longer) car loan, or taking on private college debt for a generic college experience, would not ever consider financing a thru hike

Different strokes for different folks,
but you are advocating taking a loan to go on vacation, like it is equal or "no worse" than borrowing money to get a college degree?

Yikes!