Hello everyone, I'm new here and really want to learn about the real estate world.
We are thinking to sell our house because our son will go to a specific high school next year that charges 12k per year if you don't live in their zip code. We hope to have 100k cash from the sale after all agent fees and everything paid off. We will only live in this area for 4 years and after our son finishes high school our dream is to but land and build a custom home.
Do you think it's a good to rent for 4 years and invest the 100k in real estate? or buy a house in this area (property taxes and house prices are insane) and sell it after 4 years?
What would you do?
We never owned a rental property but would love to start and learn.
Thank you so much for your help God bless you.
Welcome to the site. Its the best place out there to learn about real estate, hands down.
There are a lot of variables to your story and what you want to do so I would ask myself,
What is your goal with real estate?
You mentioned your dream is to buy land and build a custom home. If that's what you want to do then I would base my decision off of what I would need to do to get there.
Thank you Rob. The custom home will be for my wife and I to live in when our son goes to college. But we also want to have rental properties and flip houses in the future.
I guess the questions should be: is it better to rent short term (4 years) and invest the cash in real estate? or just buy a house and sell it in 4 years.
For me it would depend on the return on investment.
What are you going to do with the 100k? If it is just sitting in the standard saving account and you are renting you are losing the return you could have been making.
If you buy a house and you know you're going to sell it in 4yrs there is opportunity to rehab/update(think Long term flip) and increase value.
There are very few situations where renting makes sense financially. They would include very, very cheep rent and being able to get a higher return on the money your saving(from the low rent) than what your house payment would have been if you had bought the house.
If you are able to buy a house at the right price, then IMO you should.
Either way, Good Luck!
that's true thanks John. This site is really helpful I love it
My husband is active duty military (navy) we live a "very" transient life style. We are buy and hold investors. We buy short sales that are usually depressed. Our houses tend to be the crappiest houses in the nicest area and school district we than fix it up and rent it out. This has been awesome because you can get house loans at 5% or less down with personal interest rates.
As the other have said it really depends on youth goals, risk tolerance, williness to I've in a houses that has value added ability or perfect home and risk tolerance. While we could flip any of our houses that is not the goal or pla :)
Thank you Elizabeth!
welcome to the site.
Thank you James, I'm really excited and thankful for this site because I'm just a violin guy with no experience in real estate and everybody is so nice and helpful.
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