What is the best way to use BAH while serving a typical 15-20 years? Purchase home and sell each PCS, Purchase home and rent?

And something else to keep in mind with owning vs renting - the expenses don't stop with your mortgage payment.

Lawn - meaning movers, weed eaters, edgers, leaf blowers, hoses, patio furniture, mulching...

Upgrades - I spent about $1000 replacing my stairs with iron balusters.

Probably another $1000 putting in crown molding.

Spent $600 a few weeks ago for AC repair.

Spent $300 last winter for plumbing after a water pipe broke.

It's a non-stop process.

Sir, I've always rented. I live underneath my means so that my BAH covers all utilities and everything and usually come out a little on top, putting some of that aside in savings for a future home purchase. I'm not an expert, but a close friend who is a realtor advised me a long time ago that unless you're going to be in a house for 5 years, it's a huge gamble to buy/sell. A lot of people do it and it works for them, but I'm not taking the risks. I just keep saving my money and plan on making my first, and only, home purchase when I retire!

It depends when and where you buy as well. I have bought two houses in El Paso that I have had no trouble renting for amounts greater than my 15-year mortgage on each of them, both of which have an interest rate of less than 2.75%. I live with roommates in my current house so I only spend a third of my BAH to live in my own house. Yes, there have been costs because my tenants destroyed the yard of my rental, but they're tiny in comparison to the equity that is being created by them paying my mortgage and the fact that I won't have to pay taxes on it because I'm eligible for the Capital Gains Tax Exclusion. I'm also able to deduct any repairs that I do to the house so that I pay less taxes on the income I make from rent. The IRS defines "repairs" pretty loosely, so it's important to take advantage of repairs to replace damages with upgrades.

Rules of thumb:

- Buy a house of a size that has a 15-year mortgage payment that is less than your BAH. Remember that BAH and rental costs almost always go up, but your mortgage will be the same forever.
- Buy a new construction. While the building may not be of the best quality, you can have them pay your closing costs and you'll probably sell the house before there are any major damages. Also, an extended warranty that covers pretty much anything that will break is relatively inexpensive.
- Look into getting solar panels if it's sunny where you live. The tax credit on them expires in 2016.
- Consider roommates.
- Remember that you have to live in a house 2 out of the last 5 years before you sell (2 out of the last 10 if you're military, or 1 day out of the last 10 if you're military and you get orders to leave) in order to get the capital gains tax exclusion. Basically it allows you to not pay taxes on the profit you realize when you sell your house

Know that every payment you make to an apartment complex or a rental home goes straight down the drain. Even money you "waste" repairing a rental is increasing its value to some extent.

Oh, and what am I going to do during CCC and other short duty stations? Buy an RV. I'd rather use half my BAH to finance a nice vehicle that I can use or sell later than live in an apartment and pay someone else's mortgage.