Is it possible to pay off debt while sailing?

[Suijin]

The math is pretty simple and that's up to you to crunch the numbers.

I guess the real question you're asking is, "Is it possible to make money while cruising" and the answer to that depends on your skill set, your personality, and your work ethic.

As an example I know a number of sailboat riggers who take off for half the year. I know a number who move north and south along the east coast with the seasons...summer in the Chesapeake or points north, winter in Florida or points south...and ply their trade whoever they are.

No, making Youtube videos is not the only way to do it, and is in fact probably considerably more work than it appears.

[Lake-Effect]

Originally Posted by Wind459

I recently bought a sailboat, and I don't just love it, I want to make it my life. I want to make a living off sailing now. So the big question I have is, is it possible to make around 40k a year doing it.

heh. I want to make a living off sailing now. that's like a 6 year-old asking if they could be paid for eating ice cream.

Make $40k a year sailing? Well, there are some pro sailors doing crewing like America's cup. There's working as crew for mega yachts, though i doubt if any but the captain make close to US$40k. Merchant marine?

More realistically, some $40k options are

jobs you can do while cruising
Are you a stockbroker or daytrader? problem solved, you can do that from anywhere. Ditto for a number of options that allow remote work. Software is one. I know a guy who's in the western Pacific doing AutoCAD rendering.

jobs you can do in the boating industry
Not while on your boat, but it's at least with boats. short answer - learn a boat trade. Also sales, insurance, service, detailing...

jobs you can do while living on a boat
...anything. (but you're not out cruising)

Good Luck

[Dave22q]

Lots of folks say rent your house instead of selling. The reality is that a small absentee landlord is wearing a large 'screw me' sign. Sell, put the money into high yield, tax advantaged preferred stocks and plan on steady income about 5%.
Some cruisers make money but the vast majority have to live on peanuts. If you can continue your internet businesses your home port will not matter. However, you may spend a lot more time working than cruising. That does not sound like fun for your wife. A big boat can seem very small when occupied by two offices. You might get more cruising time by staying home and sailing on weekends and vacations. You might test the water by getting something small and old and relocating your offices onto it. A few months might change your perspective.

[Cadence]

Originally Posted by Dave22q

Lots of folks say rent your house instead of selling. The reality is that a small absentee landlord is wearing a large 'screw me' sign. Sell, put the money into high yield, tax advantaged preferred stocks and plan on steady income about 5%.
Some cruisers make money but the vast majority have to live on peanuts. If you can continue your internet businesses your home port will not matter. However, you may spend a lot more time working than cruising. That does not sound like fun for your wife. A big boat can seem very small when occupied by two offices. You might get more cruising time by staying home and sailing on weekends and vacations. You might test the water by getting something small and old and relocating your offices onto it. A few months might change your perspective.

PM me on a guaranteed 5%. In not being smart.

[a64pilot]

I rented my house out for years when I was in Germany, all it took was one bad renter, did tens of thousands of dollars of damage. Cost was way more than what I received in rent.
I'll not do that again.

[skipmac]

Originally Posted by a64pilot

I rented my house out for years when I was in Germany, all it took was one bad renter, did tens of thousands of dollars of damage. Cost was way more than what I received in rent.
I'll not do that again.

This seems to be not uncommon. Read some comments from Kenomac about his problem renters. I know of two houses in my area in FL that were rented by people that set up indoor pot growing operations. In both cases the dripping water, high humidity and heat caused huge damage; mold and mildew and even rotted floors and walls.

These were just a couple of the worst stories I've heard. At the same time I have friends that have made a very good living buying houses for rental. One guy has over 25 houses that are now mostly paid off by rental income. Overall he has had a good, positive cash flow from the business. The houses aren't big, fancy houses but even at $100,000 each he has about $2.5 million in retirement assets.

[Gadagirl]

I'm not sure of your age but since you mentioned trying to join the military for flying I'm assuming you're young enough to join any branch of the military. I'm not sure why you weren't able to become a "flyer" in the military, but I'm wondering if you've considered the Coast Guard and if that might be a possibility? Given your love of sailing , so I'm assuming love of ocean? Mariners school to become employed on merchant ships? Work on cruise ships seasonally? Work on tall ships? work as charter crew in winter's in the Caribbean, charter sails on your boat in the summers in N. America? Keep in mind you'll have to really enjoy working in the hospitality industry to succeed in cruise or charter work. If you have not worked in the hospitality sector I recomend becoming a waiter/waitress, bartender, front desk, or even a cashier in any tourist location for a 6 month stent. See how you feel about keeping a constant upbeat attitude toward your customers are at the end of that period. It's not at all easy, takes a special personality, and pays crap (unless you have those special personality traits = tips). It's not an easy job. It's not a job for just anyone, it requires more finese and diplomacy than school could teach. It's
just not for everyone, so know yourself and figure that out.

Any of the above ideas could allow you to rent out rooms in your house while you're out working, reserve your room to come back to while you're not on travel? My own children have rented rooms in such a set up, where their roommate/landlord travels extensivley but resides there occasionally.

Will the sell of the house offer enough equity to pay off the debt? Yes, a house does appreciate, usually, but there are costs involved in upkeep, taxes, and your time. Paper work involved in filing taxes as a rental. Vetting renters. Hiring a management firm? A cost to to you. Managing it yourself? A cost to you in time consumed. Complying with local codes to rent the property, etc.? Invest in a reit and you're not responsible for cleaning gutters, maintaining the lawn, replacing the roof or the various house systems and appliences. Much to consider on selling vs. renting.

Without knowing your location, age, specific interests all I've stated is general/generic advice and ideas. More things to think about and consider.

Oh! and there's this site to read about getting out from under debt. I'm prerty sure i discovered this site here in another thread, long ago; mrmoneymustache.com/

Plus all of the other great ideas and advice offered in this thread! Yes there is a way but you'll need to form a plan and then execute it based on your timeline, your tolerance for risk, your location, and your interests and passion. It can be done!

[Cadence]

Originally Posted by a64pilot

I rented my house out for years when I was in Germany, all it took was one bad renter, did tens of thousands of dollars of damage. Cost was way more than what I received in rent.
I'll not do that again.

Been there dun that. I'm not sure an agents that vets well and watches it, are not worth the % ?

[SimonFirth]

Originally Posted by Wind459

Here is my situation, outsiders looking in see me having a decent life. I have a house, some debt, but nothing compared to most people in America. I recently bought a sailboat, and i don't just love it, I want to make it my life. I had plans to join the military flying but those fell through so, I want to make a living off sailing now. So the big question I have is, is it possible to make around 40k a year doing it. I can and will be willing to survive off way less eventually, but I am curious if I can jump start my sailing career before paying off my debt, by crewing. I'm already working towards my Captains licence, but I want to invest my full time effort into this, and I am dieing for a career change that lands me outside the office. I figure with 40k, it be tough scrapping by but I would pay off my debt in less than 3 years. Also need to figure in health care and a dental plan. Im sort of down in the dumps, cause all the sailing blogs out there seem to keep their journey funded via youtube. I don't really want to have that be a necessity in my life. I apologies for not having proof read this post, Im just down and out because My friends are distancing themselves from me, and some of my family are actively making the switch to this career/lifestyle tougher.

If you can't own the boat without debt, don't do it. They are just holes in the water you fill with money. As an old skipper I sailed with some years observed "some people spend 10 to 15 years building/renovating a boat in which to go cruising. It takes so long, they are sick and tired of it before they get to it. The answer is sell the house, buy the boat, go cruising, sell the boat, buy the house and swallow the anchor". I reckon he's right.
At the same time I've owned a wooden 41 footer for some 18 years. Kept on a Hobart marina she has cost $A10K(start) - $16K(current) per year and I don't do any ocean walloping. With the arse fallen out of the second hand market, I can't sell her for a fraction of what she is worth so I'm stuck with the outlay. But she's a better boat than when I bought her. The saying is "you don't own a wooden boat, you just have a loan of them"

[ValiantV]

Originally Posted by skipmac

.

I agree that keeping the house and renting it can be a good idea. Can also be a huge pain if you get the wrong tenant so proceed carefully.

I have to echo this sentiment.

IF you bought your home at a great price, and/or IF you made a substantial down payment and your monthly installments are low, and IF your home is in a desirable area - you MIGHT be able yo rent it out at an amount high enough to cover your payment, insurance, and the costs associated with finding and keeping good tenants.

On the other hand, if your monthly payment is high, you have little equity, the house needs a lot of work, or you don't get great tenants - you could come out the loser on this.

Being a "landlord" either takes a fair amount of hands-on management, or it takes paying someone to do this for you. Remember, YOU remain responsible for maintaining the house even though you're not living there. This include all the normal stuff - dripping faucets, heat/AC problems, leaking roofs - and all the things the tenant breaks. Don't forget paining and patching every time you change tenants.

Sure, great if you can find reliable, financially-secure long-term tenants who treat your home nicely - but that is tough, and regardless how great the people are, there's never a guarantee as to how long they will stay. People change jobs, have kids, etc - all making them inclined to move.

A bad tenant can make your life a living hell. The last thing in the world you need if you're trying to scratch out a living elsewhere. I always suggest that people considering becoming landlords watch the movie "Pacific Heights"....

As another suggested, consult a property management company. Get their frank assessment of your property's rental potential - and be willing to pay the $$$ they will charge (no small fee) - or dump the house.

Though some do well at this, others lose their minds, then their shirts, then their property.

[Zven]

Another thing to consider is that if you have debt and property and tenants, you'll often need to communicate and get involved a fair bit ... Think paying bills, checking balances, dealing with insurance, answering questions, etc... Even if assuming you don't get the tenant from hell.

This means, you'll often be needing an Internet connection etc.

Internet banking and e-mail can be great, but it's not quite the same as cutting loose and sailing away with no worries in the world.

[newhaul]

Originally Posted by Dave22q

Lots of folks say rent your house instead of selling. The reality is that a small absentee landlord is wearing a large 'screw me' sign. Sell, put the money into high yield, tax advantaged preferred stocks and plan on steady income about 5%.
Some cruisers make money but the vast majority have to live on peanuts. If you can continue your internet businesses your home port will not matter. However, you may spend a lot more time working than cruising. That does not sound like fun for your wife. A big boat can seem very small when occupied by two offices. You might get more cruising time by staying home and sailing on weekends and vacations. You might test the water by getting something small and old and relocating your offices onto it. A few months might change your perspective.

I would like some info on this guaranteed 5ll% pm me with specifics like how much do you need to start with to get this going .

[skipmac]

Originally Posted by ValiantV

I have to echo this sentiment.

IF you bought your home at a great price, and/or IF you made a substantial down payment and your monthly installments are low, and IF your home is in a desirable area - you MIGHT be able yo rent it out at an amount high enough to cover your payment, insurance, and the costs associated with finding and keeping good tenants.

On the other hand, if your monthly payment is high, you have little equity, the house needs a lot of work, or you don't get great tenants - you could come out the loser on this.

Being a "landlord" either takes a fair amount of hands-on management, or it takes paying someone to do this for you. Remember, YOU remain responsible for maintaining the house even though you're not living there. This include all the normal stuff - dripping faucets, heat/AC problems, leaking roofs - and all the things the tenant breaks. Don't forget paining and patching every time you change tenants.

Sure, great if you can find reliable, financially-secure long-term tenants who treat your home nicely - but that is tough, and regardless how great the people are, there's never a guarantee as to how long they will stay. People change jobs, have kids, etc - all making them inclined to move.

A bad tenant can make your life a living hell. The last thing in the world you need if you're trying to scratch out a living elsewhere. I always suggest that people considering becoming landlords watch the movie "Pacific Heights"....

As another suggested, consult a property management company. Get their frank assessment of your property's rental potential - and be willing to pay the $$$ they will charge (no small fee) - or dump the house.

Though some do well at this, others lose their minds, then their shirts, then their property.

All good comments and sound advice. I've heard a number of horror stories with rental properties but, I also know several people that have accumulated 15-25 houses by renting them out and paying the mortgage with rend AND all with positive cash flow to go with it. However, like almost any money making endeavor these guys all worked hard at it, bought carefully (location, location, location) and monitored the tenants very carefully.

[danielamartindm]

IMHO, pay off your debt BEFORE you enter a cruising life style. For most, it's challenge enough to maintain a cruising kitty with NO other debts.

[belizesailor]

Can you make $40K a year while cruising full time? Probably not.

Can you make $40K a year while working in some aspect of the marine industry? Absolutely, but this means you are working most of the time not cruising. Of course, getting paid to go sailing aint a bad gig.

Can you make $40K a year with no relevant experience, licenses, or certifications? Err...no.

My suggestion: get involved in sailing, build experience, get certs/licences, pay down your debt, then go looking for paying gigs.