Advice on Getting Started

[Benjamin Sulka]

Hey BP!

I am currently a college student set to graduate in May of 2023 and I really need some advice.

My girlfriend and I want to do a house hack in the Cleveland area after we graduate. Currently, interest rates are high and it has been challenging to find an affordable property in an "A" or "B" neighborhood like Shaker Heights, University Heights, Cleveland Heights, etc. Plus these areas have high taxes and point-of-sale inspections that may require a decent amount of $$$ out of pocket.

I have close to about $17k saved up from working during college but I also have some outstanding student loan debt to contend with. We will be making over $100k combined post-graduation but our current lease ends in July of 2023 so we would have to quickly find a new place before we really have a chance to save any money or pay down any debt.

Do you think it would make sense to wait a year, pay down some of my debt, wait for interest rates to ease a bit, and then get into the game? I hate to have to stay in an apartment for a year and throw money down a rat hole but it doesn't seem affordable at the moment to invest in a property that may require a large sum out of pocket.

We want to get started on the right foot but I am pretty stuck at the moment.

Any help would be greatly appreciated.

Ben Sulka, aspiring real estate investor

[Chris Davidson]

@Benjamin Sulka reach out to an agent or a lender. Right now you will need a lender, but sometimes agents can provide the best refences for lenders as they work with more lenders than your average buyer. You need factual data based on your situation to get started and make a game plan. If the numbers make sense go forward. Get out of the  theory and get into the now!

You got this!

[Garrett Christensen]

I don't think many people would suggest waiting on interest rates because no one really knows what will happen. I would suggest starting to look at and analyze deals more seriously over the next few months to get a realistic idea of whether you can make the payments each month. Everyone has a different risk tolerance, especially when you have some other debt obligations. I always tell people to buy when you can buy and don't try to time anything. It's never really a perfect time to buy real estate until a few years after to bought it, haha. Good luck man, I'm sure you'll make a great decision.

[Benjamin Sulka]

Quote from @Chris Davidson:

@Benjamin Sulka reach out to an agent or a lender. Right now you will need a lender, but sometimes agents can provide the best refences for lenders as they work with more lenders than your average buyer. You need factual data based on your situation to get started and make a game plan. If the numbers make sense go forward. Get out of the  theory and get into the now!

You got this!

 Thanks, Chris! I talked to a lender and he said that there really is no reason to get a pre-qualification until 90 days before purchase because if I did so now, they would need to run my credit again anyways. Should I push for trying to get pre-qualified regardless? @Chris Davidson

[Benjamin Sulka]

Quote from @Garrett Christensen:

I don't think many people would suggest waiting on interest rates because no one really knows what will happen. I would suggest starting to look at and analyze deals more seriously over the next few months to get a realistic idea of whether you can make the payments each month. Everyone has a different risk tolerance, especially when you have some other debt obligations. I always tell people to buy when you can buy and don't try to time anything. It's never really a perfect time to buy real estate until a few years after to bought it, haha. Good luck man, I'm sure you'll make a great decision.

 Absolutely, and I agree. I have been analyzing deals but I am just unsure of what my exact financial situation is going to be when I graduate. I want to get into this ASAP but I want to start off on the right foot without wiping my entire savings out on a bad deal. 

I really appreciate the response. 

[Chris Davidson]

Quote from @Benjamin Sulka:

Quote from @Chris Davidson:

@Benjamin Sulka reach out to an agent or a lender. Right now you will need a lender, but sometimes agents can provide the best refences for lenders as they work with more lenders than your average buyer. You need factual data based on your situation to get started and make a game plan. If the numbers make sense go forward. Get out of the  theory and get into the now!

You got this!

 Thanks, Chris! I talked to a lender and he said that there really is no reason to get a pre-qualification until 90 days before purchase because if I did so now, they would need to run my credit again anyways. Should I push for trying to get pre-qualified regardless? @Chris Davidson

 You don't need to get a full pre qual, but he should be able to enter your info and give you an idea of what your approval is with out running a hard pull if you have a ball park on your credit. 

In my opinion it worth knowing what it is going to look like unless you have bad credit a pull wont hurt you that bad, and if you are a year out will be able to make improvements anyways. Right now you are flying in the dark and trying to plan with ideas instead of facts. I would dive deeper into the conversation and see what you can make happen that way you can have a better plan. 

[Benjamin Sulka]

@Chris Davidson I appreciate the clarification. I will absolutely

[Eliott Elias]

Right now is the biggest opportunity in 20 years to buy. It is a buyers market and whatever you say goes, wait till rates go back down you will see a lot more competition 

[Benjamin Sulka]

Quote from @Eliott Elias:

Right now is the biggest opportunity in 20 years to buy. It is a buyers market and whatever you say goes, wait till rates go back down you will see a lot more competition 

 Thank you for the response, Eliott!!