Should We Wait Until Getting Married to Start?

Question

Hi everybody, I've spent the last 6 months learning, reading, and researching rental property investments and have my girlfriend 100% onboard as she begins to learn.

For background, I'm 27 and she is 26 and we both just graduated with masters degrees and started our professional careers within the past 2 months. I have a mound of student loan debt and she has none. However, I make double what she does. We'll be living at home, at the minimum, until the end of the year to build savings before we move in together. Collectively we each have around $40k saved already (80 total).

We're looking to buy near the metro in Middlesex County, NJ for travel purposes and would ideally house hack using an FHA loan. Our biggest question is should we wait to get married to share the cost of paying the mortgage minus whatever rent is paid. OR should we skip on renting all together and look for houses for our first place to move in together with the mortgage loan in only one of our names?

Last, would either of us be less likely to qualify for the loan? And, if so, who would be the better candidate to get it?

Thanks for the help!!

Caleb Brown · Answer

Personally would not buy with someone I am not married to(unless it was a business partner). If something goes wrong with the relationship it gets ugly. If you wanted to buy a place under your name only then that's fine. You have a decent bit saved so I would imagine you can house hack here soon. Make sure to chip away at the student loan debt. If she's the one propose ;)

Shawn Mcenteer · Answer

Hi @Brian Chaballa great news! House Hacking is how my wife and I got to Fi.  It is hands down in my opinion one of the safest ways to build wealth locally in NJ.  $80K is plenty to start. Both being onboard is huge plus.   The easiest way to break this down is understanding how New Jersey works.  We have the ability to cash flow but the biggest advantage we have is yearly rent increases and appreciation.  Hands down the best advise I give clients is time in the market not timing the market meaning, the longer you own the more advantages come your way. Finding a multifamily where tenants pay the bulk of your mortgage reducing your expenses tends to have a more positive outlook in comparison to staying on sidelines and saving.  If you can incorporate a value add approach the process of owning will compound substantially.

For example this past weekend I was in a house hack where 1 unit is rent ready and the  other unit needs work.  Property is great becuase my clients will have the potential to collect right away by renting out nice unit and will spend the next few months renovating the unit they live in.  By renovating, a year from now property will increase in value via force appreciation so when they move out there will be huge equity gains and even larger rents being collected.  With that being said there is a good shot they will be able to leverage equity gains to help purchase next house hack.

To Calebs point god forbid things change.  Last thing I would want to see is you both do all the work and have to sell.   But my guess is you are both committed to house hacking and each other so bit of advice; save money for home (my wife and I put money to house over elaborate wedding) and  ask for renovation tools for wedding gifts  :)

Brian Chaballa · Answer

@Shawn Mcenteer thank you so much for taking the time Shawn. We're both definitely going to save up and have already planned to save money on a wedding and looking for renovation help as gifts, so it's funny you mentioned it. Big confidence boost

Brian Chaballa · Answer

@Bruce Woodruff thanks Bruce, yeah unfortunately that's my biggest mountain is my student debt but I work all throughout school to pay down interest and I'm fortunate to be at home that I can put the extra each month into paying it down

James McGovern · Answer

I would wait till marriage to avoid confusion with ownership

Bruce Woodruff · Answer

Either wait until you're married or start a LLC, Corporation or Partnership (drawn up by a Lawyer of course) This way, in case you split, you're both protected...and pay down that student debt ASAP...!

JooYung Choi · Answer

Hey Brian!

Amazing that you guys are both all in to securing your financial freedom. I was also in your shoes not too long ago. My girlfriend, now fiancée, and I also bought our first home together to househack. Fast forward a couple years and we now have been steadily adding to our portfolio of SFH, MFH - STRs and MTRs. All the money you would save from reducing your housing expenses really stack up and gets you to your next property faster. As far as renting vs buying a home goes, buying the home is the clear investment decision, no point in timing the market. I would say renting so you guys have a chance to live together and be sure about each other before making a big purchase together.

best of luck to yall!

Brian Chaballa · Answer

@Caleb Brown thanks for the comment Caleb, currently working on it💍😂😂

Aaron Zimmerman · Answer

If you can afford it , buy one house hack under her name and then later on buy a house hack under your name. Repeat the process as long as possible

Should We Wait Until Getting Married to Start?

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