What are some of the disadvantages of beginning full timing?

[precioustime]

We presently own an all paid for home but are considering becoming full timers. Our present rig is a 28' 2016 motorhome, very comfortable for us two. If we sell the home and full time, travel the US and see the country are there any disadvantages to this plan? I could keep the home then travel for 6 months to a year and see how we feel fulltiming.In short what disadvantages have you found in becoming a full timer?

[2gypsies1]

You can't know if you like full-timing in 6m time. That's the period where you work out the kinks of the lifestyle.

We made our decision in one month's time and took off for good after 4 months. We happily full-timed for 16 years and never regretted a thing.

First, don't sell the house and buy a RV with the money. That money should be earmarked for your 'exit plan'. Storage fees on your belongings will add up fast. By the time you stop full-timing you won't need a big house with lots of maintenance and a many rooms of furniture. You may find a better state to live in (we did) and a much smaller place (we did). We also bought furnished so didn't have to buy a thing. Over the years we met many new friends and eventually we all began wintering in the same area. Consequently, 23 couples bought in the same area and we have an instant family.

There is no better feeling than 'freedom from stuff'!!

[Dance_Chick]

DownTheAvenue wrote:
You would be very wise to go on the road for about 9 months before you sell anything. Go in the summertime when the heat is oppressive in Miami. Go North. See how you like RVing for a 9 month period. Come home and evaluate. You may be ready to kill each other by then, or have a realtor on the phone to list the house.

I agree with this. We've made friends with a couple at a CG we stayed at for 6 weeks this summer and are back there now for a month. They are renovating their house and are living in their MH. They were told it would be at least 6 months. In no time flat, he's climbing the walls and has "MH cabin fever". Granted, he isn't doing this with a fulltimer attitude or intention, but the point is you might be tearing your hair out after a few months.

[DownTheAvenue]

You would be very wise to go on the road for about 9 months before you sell anything. Go in the summertime when the heat is oppressive in Miami. Go North. See how you like RVing for a 9 month period. Come home and evaluate. You may be ready to kill each other by then, or have a realtor on the phone to list the house.

[jorbill2or]

I think the discussion was on a rental home not a primary and turning a primary into a rental?

[2oldman]

If you pay capital gains on a primary home sale you're richer than I am!

[Lwiddis]

Selling your home isn’t stupid but it is a major decision that requires restraint on using those funds, sound investment, excellent tax advice etc.

[westernrvparkow]

fitznj wrote:
If you have a paid for home, you would be stupid to sell it. You could either rent it out

I would not call it stupid either; It's a personal decision, we rented
out our paid off house for 20 years. In reflection, we should have sold it 20 years ago.

Dealing with renters was an ok experience but our final rented was the
"renter from hell" - Was so glad we finally sold the house. Remember
you have to be "available" if something in the house needs attention,
tough when you're 2,000 miles away.

From a financial perspective - it was a wash; capital gains was a killer.

At the end income = expenses (just).

Ah yes, Capital Gains. You take all the risks, attempt to collect the rent, make the repairs, fix all the damages, pay the bills, pay the income taxes and when you sell, you find out your Uncle Sam was a silent partner and wants his cut. Of course most of gains are inflation and now with the net proceeds from selling that 2000 square foot home you have enough money to buy 1500 sq footer. But hey, you are rich, probably inherited your illegitimate wealth, have all kinds of tax shelters and should pay a steep price for being a slumlord and keeping the working man down. Come to think of it, Capital Gains taxes are waaaaay too low.

[westernrvparkow]

I agree that it would be very foolish to sell everything and put it all into a plan to RV forever. But that doesn't sound like your situation. Others have mentioned the biggest issue is getting rid of your stuff. That definitely cuts you twice. Selling your belongings will net you a fraction of what you paid for them, is that OK with you? The alternative is storing everything which is expensive and not really good for things in the long run. Then if you decide to stop full timing an move back into a traditional home, you have to buy a lot of that stuff at full price. Not a deal breaker, but it does sometimes make you want to kick the dog.
To me, a house, unless it is something really unique due to location, historical significance etc. is nothing but a collection of 4 walled rooms. If you sell your house, place the proceeds in moderately conservative investments, you will have more than enough money to replace it when you decide to stop the full time lifestyle. On top of that, when you do make that transition, the odds are great that your old home would not be exactly what you would want or need. If that is the case, selling now may be an advantage.
As for full timing, it can be exciting and rewarding, but you do give up a lot you might currently take for granted. Gardening, your church, your weekend football buddies, the routines you have, will all change or disappear. Many people find that the square footage of a RV is fine for a weekend, but leads to homicidal rage over months and years.
Your post indicates you have the ability to "try it before you buy it". That is heck of a good plan. But to make it a true test, include a couple of months not in the prime of what you expect to do so you can get a feeling for the down time.

[jorbill2or]

As said Very personal decision and no "one fit" answer.
We Traveled for a year and kept our house but the hassles, repairs and worries weren't worth it! The value had skyrocketed the last few years,and the Value compared to almost anywhere we would settle was in some cases double. Withdrawing all that gain was a tax free gain. If you turn it into a rental there are possible tax consequences.
A year and a half ago we spent two months getting rid of, transferring to our kids what they wanted and sold our House. Paid off everybody and stashed the rest in a secure investment (our exit). I/We sleep very well now
No more taxes, insurance, upkeep etc etc on a place , a Tri Level large 4 bedroom home we came to realize we didn't want to deal with in our latter " Infirm" years and would sell anyway to buy a condo or small property.
The disadvantage if you have sold is you have no immediate place to return.You definitely cut ties with your church our other organizations etc that may be important to you. Was this one of you's dream home That selling wont set well? You run a risk that real estate will skyrocket and your safe investments will not buy a "equivalent" house if that is what you think you'll return to.
Good luck, and whatever you decide, make it together and review it frequently.

[2oldman]

Optimistic Paranoid wrote:
It's a very BAD idea to sell a home and put the money into an RV. RVs depreciate quite badly, and it will be worth much less when you sell one, as opposed to real estate, which usually appreciates.

If all you're concerned with is appreciation on your money, then yes, it is a bad idea. If you're concerned with cashing out your life's work, hitting the road and having a carefree time, then no, it's not a BAD idea. It's certainly not universally, for everyone, a bad idea.

I also don't think it's a great idea to wish to be buried with your money,your house or your job.

[fitznj]

If you have a paid for home, you would be stupid to sell it. You could either rent it out

I would not call it stupid either; It's a personal decision, we rented
out our paid off house for 20 years. In reflection, we should have sold it 20 years ago.

Dealing with renters was an ok experience but our final rented was the
"renter from hell" - Was so glad we finally sold the house. Remember
you have to be "available" if something in the house needs attention,
tough when you're 2,000 miles away.

From a financial perspective - it was a wash; capital gains was a killer.

At the end income = expenses (just).

[Optimistic_Para]

You didn't say how old you are. Just remember that at some point, due to age and/or health issues, you will more than likely have to come off the road. What will you do then? Around here, it's referred to as having an exit plan.

It's a very BAD idea to sell a home and put the money into an RV. RVs depreciate quite badly, and it will be worth much less when you sell one, as opposed to real estate, which usually appreciates. Fortunately, you already HAVE an RV, so you don't need to sell your home in order to buy one.

You're in Miami. Do you LIKE spending winters there? It's an ideal place to 'reverse snowbird'. Visit Canada, Alaska, and the northern part of the US during warm weather and return to your home for the winter.

Would your home be a good place to spend your last years in? Does it have stairs you would need to climb to get to the bedrooms? Could the bathrooms be adapted to serve someone in a wheelchair or using a walker?

Maybe you should sell it and PUT THE MONEY IN SAFE INVESTMENTS so it would be there to buy a new, more suitable home, when you come off the road.

[TenOC]

dons2346 wrote:
If you have a paid for home, you would be stupid to sell it. You could either rent it out but you have to get rid of your stuff or store it. You could do like we do. We are on the road about 9 months and then are home for the rest

There are 3 problems with this plan.
1. If you keep the home you have the expense of the empty home.
2. Most insurance companies will not insure an empty for more than 30 days home.
3. When you sell the home you may not be able to deduct the capital gains on the home unless you have lived in the home for 2 of the last 5 years.

Do as I did, pretend you have died and get rid of the stuff your kids will need to get rid of when you really die -- they will thank you when you do die. As a fulltimeer for 10 years, my budget is $10 to $12 per night for camping since I camp at government land at half price and dry camp or boondock free often. My biggest expense is for fuel but I stay 7 to 14 days at a campsite. Thus I live on $10,000 to $15,000 a year.

[2oldman]

dons2346 wrote:
If you have a paid for home, you would be stupid to sell it. You could either rent it out...

I don't think I'd go so far as to call it stupid. If you're in your golden years it's nice to cash out and have all the money to do what you want.

Many think it's stupid to rent it out. Being an absentee landlord is not something I'd consider a great idea.

[Mandalay_Parr]

Call me.
We can discuss.