From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1525 topics, 14455 posts — Last Post 04/24/14, 08:12AM

BiggerPockets Exclusive PRO Area

117 topics, 841 posts — Last Post 04/23/14, 08:28AM

New Member Introductions

10987 topics, 86590 posts — Last Post 04/24/14, 08:00AM

Real Estate Success Stories

399 topics, 6214 posts — Last Post 04/24/14, 07:46AM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5993 topics, 47229 posts — Last Post 04/24/14, 07:58AM

Renters

650 topics, 5863 posts — Last Post 04/24/14, 07:43AM

Get Foreclosure Help - Help Stop Foreclosure Forum

317 topics, 2561 posts — Last Post 04/23/14, 08:28PM

Home Owner Association (HOA) Issues & Problems Forum

238 topics, 1611 posts — Last Post 04/23/14, 04:02AM

Do it Yourself

659 topics, 6320 posts — Last Post 04/24/14, 08:05AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3713 topics, 29770 posts — Last Post 04/24/14, 08:09AM

Real Estate Guru, Book & Course Reviews and Discussions

1139 topics, 11603 posts — Last Post 04/24/14, 07:05AM

Ask About A Real Estate Company

743 topics, 7344 posts — Last Post 04/22/14, 11:25PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5640 topics, 43973 posts — Last Post 04/24/14, 08:13AM

Rehabbing and House Flipping

3354 topics, 31109 posts — Last Post 04/24/14, 07:10AM

Real Estate Development & New Home Construction

554 topics, 4695 posts — Last Post 04/24/14, 06:22AM

Innovative Strategies

705 topics, 6044 posts — Last Post 04/22/14, 04:06PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

868 topics, 6694 posts — Last Post 04/24/14, 08:03AM

Rent to Own a.k.a. Lease Purchase, Lease Options

699 topics, 4947 posts — Last Post 04/24/14, 07:32AM

1031 Exchanges

143 topics, 1062 posts — Last Post 04/22/14, 03:21PM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1691 topics, 11313 posts — Last Post 04/22/14, 09:26PM

HUD, VA, and Tax Sales

416 topics, 3103 posts — Last Post 04/23/14, 02:29PM

REOs

1217 topics, 10604 posts — Last Post 04/24/14, 07:13AM

Short Sales

1539 topics, 13154 posts — Last Post 04/23/14, 08:25PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7253 topics, 71209 posts — Last Post 04/24/14, 08:05AM

Mobile Homes & Mobile Home Park Investing

639 topics, 5146 posts — Last Post 04/24/14, 05:13AM

Investor Basics

Starting Out

7733 topics, 60694 posts — Last Post 04/24/14, 07:10AM

Investor Psychology

432 topics, 6110 posts — Last Post 04/24/14, 07:56AM

General Real Estate Investing

4730 topics, 37327 posts — Last Post 04/24/14, 07:57AM

Real Estate Investor Marketing

1739 topics, 14152 posts — Last Post 04/24/14, 08:02AM

Commercial Real Estate

Commercial Real Estate Investing Forum

1413 topics, 9013 posts — Last Post 04/24/14, 12:59AM

Multi-Family and Apartment Investing

1123 topics, 9397 posts — Last Post 04/24/14, 06:46AM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

645 topics, 4913 posts — Last Post 04/24/14, 05:42AM

Business Basics

Goals, Business Plans & Entities

834 topics, 7588 posts — Last Post 04/24/14, 07:15AM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2802 topics, 20136 posts — Last Post 04/23/14, 06:57PM

Property Insurance

311 topics, 2057 posts — Last Post 04/23/14, 01:20PM

Personal Finance Discussion

330 topics, 2754 posts — Last Post 04/22/14, 12:06PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2852 topics, 19849 posts — Last Post 04/24/14, 06:22AM

Creative Real Estate Financing

1221 topics, 8861 posts — Last Post 04/24/14, 07:55AM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1217 topics, 8037 posts — Last Post 04/24/14, 08:13AM

Bankers, Lenders, and Mortgage Brokers

442 topics, 1931 posts — Last Post 04/23/14, 09:04PM

Contractors

269 topics, 1690 posts — Last Post 04/22/14, 07:33AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

2017 topics, 11758 posts — Last Post 04/23/14, 10:03PM

Americans & International Real Estate

162 topics, 572 posts — Last Post 04/24/14, 03:31AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

66 topics, 440 posts — Last Post 04/24/14, 05:54AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15085 topics, 54138 posts — Last Post 04/24/14, 08:03AM

Real Estate Events and Happenings

168 topics, 2608 posts — Last Post 04/24/14, 07:25AM

Off-Topic

Off Topic

Off-Topic

2907 topics, 32447 posts — Last Post 04/24/14, 07:23AM

Housing News & Real Estate Market

920 topics, 8391 posts — Last Post 04/23/14, 02:43PM

BiggerPockets Real Estate Investing Summit

97 topics, 1752 posts — Last Post 04/23/14, 04:51AM

BiggerPockets Resources

Forums » Starting Out » Im 20 years old, should I buy a house or rent?

Im 20 years old, should I buy a house or rent?

27 posts by 17 users

Signup


Hello, I've been lurking these forums for awhile now. I thiink this my first post... this is a great forum with a lot of information, I could read all day if I had time!!

I'm 20 years old and living at home, I want to move out soon though. I am debating on weather I should rent a place or weather I should have the mindset of " I will never pay rent" and buy a small house. I'm not rich so the house would be a small starter house. I do have some money saved up though puting 10 or 20% down wouldnt be too much of a problem.

I guess life would be simpler if I rented, and it would be easier. But it would probably be better in the long run to buy a house, don't you think?

I have wanted to invest in real estate since I was in high school. I'm wanting to move out pretty quick though... so what should I do? Rent or buy a house?

I live in Ohio by the way, In the dayton area. Anyone on these forums live close to where I do? MikeOH?

Thanks guys!!



SFR Investor · Wheat Ridge, Colorado


You have more options if you rent. If you end up wanting to be somewhere else, its pretty easy if you're renting. Owning ties you down more.

Don't think you're going to see any big appreciation in that area. Good news is that prices are rents are pretty well in line (vs. FL, LV, or CA) and you could find something relatively cheap.


Jon Holdman, Flying Phoenix LLC



Hello Neo and welcome to BiggerPockets! Although the appreciation might not be there, it sounds like you have a desire to be a homeowner, which is a great thing to be! Tax deductions, pride of ownership, no Landlord telling you what you can and cannot do. You haven't said what you plan to do in your life - Are you going to school or plan to? If you need to be flexible and able to move at a moment's notice then maybe you rent for a while until you are stable. However, if you feel like you will be where you are for some time, then buying is better I think. But, use the knowledge you are getting from reading the posts here, and buy at a discount, so you are going in with some good equity, not just from your down payment. Now is a good time to buy, but make sure you buy well! let us know if you have specific questions! Good luck, Mike



Real Estate Coach · Oakton, Virginia


I would go to the creative financing section forums and learn how to buy houses that way.

You need to learn how to buy houses subject-to and on lease options.

I would not put 20% down on a property, because if you are doing a high volume of properties every year you will quickly run out of cash.

So I would certainly buy a house instead of rent, but make sure you are buying it with your investor's " hat" on.




I would only buy a private house if you plan on staying there. If you plan on moving around every few years the closing costs are killing you and you'll be better of paying rent.



Wholesaler · Amarillo, Texas


If you are open to doing some work on a house then buying a house at a discount, fixing it up over the next couple years, and then reselling is an excellent way to get started in the investing arena.

The sale of your homestead is tax exempt, with some stipulations, so you get to keep ALL the profits. Its a great to build up a nest egg over the next several years. I know several investors who move every couple years to capitalize on this tax exemption.



Real Estate Investor · Katy, Texas


Also remember, rent is not throwing money away. It is paying for a place to live.



Residential Real Estate Agent · Long Beach, California


If you plan to stay in one place at least 5 years, then I think you are foolish to rent and not buy. Depending on where you live, some cities/states have first-time buyer owner-occupied deals for downpayment money, lower interest rate, etc. Even here in SoCal you can get into a place for 20% down and it would end up being pretty close to the cost of rent. Buy a fixer and do the work yourself--most people are too lazy or scared to do that so you can get a good price on a place.

After 5 years, keep the house and rent it out so your tenant pays down the mortgage. Then buy another fixer to live in while you do the work.

I'm very conservative but this has worked for us. There are others on this board that have more aggressive strategies to accumulate properties faster with more debt.



· Massachusetts


Have you considered buying a multi family? If you buy at a discount you should be able to get most of the mortgage paid by your tenants. This way you will be building equity, have place to live and gain landlording experience all in one.



Real Estate Consultant


Neo,

Regardless of which way you go, good for you. Good for you having money saved up. Good for you to be thinking about your future at an early age. Good for you for doing research before acting.

On thing not mentioned though is income. Make sure you have sufficient income (obviously) before purchasing. It is one thing to get into a deal. It is another to get into a deal that you can afford.

good luck.



Private Money Lender · Pleasant Hill, California


Good for you being so young and realizing your potential. I agree with others in this thread that you should only buy if you can afford it and you are committed for at least 5 to 7 years.

NEVER bend over backward or spend all your monthly income on a home. If you would like to explore what you can afford I am open to a conversation with you.



· Florida


im 22 and chose to buy 2 houses and rent the one i live in, Id rather put my money towards investments.



Inspector


I'd be searching every post that MikeOH has made and would take his advice. He's been in the business in your state for many years and every post he has made makes solid financial sense. It is a gift to you.



Real Estate Investor · Bergen County, New Jersey


I am in a similar situation. I currently live at home, don't pay any rent or anything so I've been able to save money this past year. I would like to move out also, living away from my parents house for 4 years at college and then coming home has its pros and definitely its cons.

I'm in NJ, so finding a property which I can afford is harder than finding a nice place to rent in a good location. Also I am not totally sure where I'll be in 2,3,4,5 years, so any house I'd buy I'd have to make sure I can cash flow if I decide to move in let's say 2 years...

So kind of going with the first question, if you're not forced to move out of your current home where you don't pay any rent etc.. is it dumb to go out and rent a place...? I'm thinking it might be....
(I actually just found a great place that I can rent with 2 friends if I'd choose to; would let me sleep an extra hour in the mornings)



Real Estate Investor · San Francisco Bay Area, California


IMO If you can find a good deal (I mean from an investors point of view) and you plan on staying for a minimum of 3 years then you should definitely purchase. Heres an example of how to make something like this work for you. My best friend purchased his first home when he was 18 when he went away to college. Hes 21 now and since turned the place into a frat house and is now actually profiting over $1200 per month on top of his mortgage. Suprisngly, the house isn't a mess at all. In Lieu of rent, he actually has one guy who's job is to keep the house in tip top condition. It's super funny to watch cos he's running this frat house like a business. It's worth mentioning that he is also one of the most brilliant men I've ever come across.. and hes only 21. But yeah, with some creativity, you can definitely make buying a house a very profitable investment



· Boca Raton, Florida


Buying is always better. The only thing you have to remember is the costs associated with it. If your renting and something breaks you don't have to break the bank to fix cause its your landlords responsiblity. If something breaks in your house, you gonna have to come up with the cost. I would say budget yourself and see what you can and cant afford and then maybe you'll have your answer.



Real Estate Investor · stamford, Connecticut


Hey, I'm 24....but 3 years ago I was in the same place. I would suggest purchasing a multi family that cash flows, the house will build equity and you can use the cash flow to build reserves.

If you want to move away from home, RENT - you can afford the lifestyle you want without the physical commitment.

Best part is... you can do both!





Sign up