It is true that you take a risk when you plan to leave in less than 5 years. But as long as you evaluate that risk and don’t go in blind you can eleviate some of that risk. As a military family, you face that question frequently. In my first house in DC metro area that I sold in ’02, I made about $200K in 4 years. This time, if all goes well, I’ll lose about $50K. Not bad overall I guess. (Not in equity, just in improvements I put in that I didn’t get back, expenses on the empty house, etc.) But yes, all things being equal, I certainly wouldn’t recommend it genrally. But I have seen it work. I knew one military family that had a rental house in every town they had been stationed in. They bought when they moved and rented when they left. They only rented to other military families and of course that was a constant source of customers. Worked for them, but I then I haven’t talked to them since BRAC.
I put the house on the market in Feb ’06. I left the house vacant, but fully furnished, clothes in the closet, etc until Oct ’06. At that time I was forced by Navy rules to “pack out” as we say and put my stuff in storage until I had somewhere for it to be delivered. (which turned out to be May ’07 when I had to settle on the house I bought in DE) .
There is a broker and she will get a commission at settlement which could be two years from now. There is a fully effective agreement of sale, it just has a closing date of 8/31/09. The buyers have the option to settle early. If they walk, I guess she gets nothing and just has to hope that I relist it with her.
