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Originally Posted by US RV As-is
What would it take monthly to afford full time Rv'ing and the retirement life? [snipped]
Not sure if I want to sell or rent my home out. If sold, I would be debt free and still have about $100K left over. [snipped]
Most of my camping would be free through out BLM lands and state parks, so the most of my cost would be fuel and food and a Jeep that we would be pulling for $300 a month payment. Oh plus about $100 or less for insurance. What would it take to go on the road full time and just get the hell off the grid once and for all?
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As many others will say, it depends. You ask 10 people, you'll get 15 answers! LOL. Mostly, it will depend on how extravagantly you want to live.
There are a few givens that do apply. Basically, your cost for food, clothing, haircuts, etc. (what my wife calls "living expenses") will be essentially the same as whatever your current expenses are. Walmart is an excellent source because they are everywhere! As we say, "Walmart is our pantry." Other expenses that will stay basically the same include health insurance, insurance for your towed vehicle, medicines, etc.
Whether to sell or rent your house is a function of the current payment and current market rental rates for similar property. I have two rental houses and a very good property manager. (I would NEVER try to manage rental property while traveling full time! Ask me how I know!) A property manager will be able to tell you what the rent should be.
A property manager will charge you 10 percent of the rent each month. There is usually an initial payment of about half of one month's rent as the charge to advertise and vet potential tenants. The property manager will handle all tenant contacts and take care of repairs as needed. My PM will handle minor stuff up to about $250 without needing my approval. (She still notifies me before spending the money.) Anything over that requires my approval. You can google property management to learn more details.
Renting the house makes sense if your net rental income will exceed your payment. For example, if your house rents for $1500 monthly, the property manager gets $150 off the top. Your net rental then is $1350. If your payment (PITI) is $700, your gross profit is $650 per month.
Bear in mind that your homeowners insurance will not cover the home as a rental. You'll need a Landlord policy, which is also called a fire and wind policy. Your insurance agent ought to have the details you need to determine the type and amount of coverage you want.
Your home insurance cost should decrease somewhat. That will be offset by your full-timer's policy on your motorhome. Full-timer's coverage is similar to a homeowner's policy and is more expensive than regular RV coverage.
A big advantage to renting is you can then depreciate the home, which reduces any taxable income. Another advantage is, if you decide after a year of full-timing that you don't like it, you have a home to return to!
Whether you sell or rent, you will lose your house payment! (If you rent, the tenant basically will pay your house payment and then some.) Of course, if you finance the RV, the RV payment becomes your new house payment.
Another thing to remember tax-wise is if you full-time, any interest you pay on the RV becomes deductible home mortgage interest. (Of course, even if you don't full-time, RV interest is deductible as a second home.)
As for the actual cost to full-time, I can only give you my experience. We travelled half-time for 11 years and have full-timed for the past 5 years. My initial travel budget was $1500 per month. That included fuel, campground fees, and routine maintenance (oil changes, tires, etc.) In 16 years, I've only exceeded the budget three times.
Again, your cost will be different, depending on how you choose to travel. Traveling from point A to point B, I choose to NOT stay overnight in an RV park. (Unless I'm in seriously hot country like Texas in the summer!) Staying in an RV park, I prefer at least a week and preferably a month at a time. Both rates are significantly less than the daily rate (unless you're in a resort destination.)
You mentioned you'd be boondocking on BLM and other federal lands. Don't forget as a 100% DAV, military-only campgrounds are also available. The cost is considerably less than private campgrounds.
You would also qualify for a free National Parks pass. This allows you to camp at Corps of Engineers campgrounds at 50 percent off the regular prices. It also grants no cost entry to all national parks.
Well, it's just one man's opinion, but I hope this gives you some ideas to work with.
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