Good Morning BP Nation,
I have a burning question that's been on my mind for a few weeks now. I just graduated college and started my Financial Analyst job in Greenville, NC and it has been quite the ride already. Very long hours although I plan on staying here for AT LEAST 1 year and I've been researching the local market for about 6 months now.
I am currently paying rent which I know is a cardinal sin here in BP nation, my question to you is should I be looking into an investment property (single-family home with roommates/multi-family duplex with a roommate and renting the complete other unit)? I know I will be here for at least a year possibly longer so I need to hear other opinions. Paying rent is essentially shredding my money and throwing it away so I would love to hear some feedback on what y'all think!
Thank you so much in advance,
First of all, congratulations on graduating and the new job!
As for your current living situation, I don't feel as if paying rent right now should be frowned upon, for the following reasons:
1- As long as you're not taking on the entire cost yourself by living alone, I am sure your rent payment is not nearly as much as a 1 bedroom place would be.
2- If you do have to rent, which in this situation it appears you do currently, although it doesn't build equity, it may give you time to learn the market around you while paying minimal rent (No swanky water-front apartment with all of the amenities, this is obviously extremely pricey)
3- This is also a great opportunity to find some inspiration for your future in real estate. Similar to when a football coach tells his players to "remember this feeling" after a big loss so they can assure it won't happen again, remember the feeling of having to pay rent and be sure that in your (hopefully near) future you can transition to the other side of things as a landlord and escape the tenant life.
I think for now you need a serious look at your situation. Job aside, is this market one you want to live in and invest in in the future? The job shouldn't be the issue so much, you're well educated and can get a job elsewhere, but is that where you want to be if you transition away from this company?
If no, consider where you want to transition to, and hold off on buying anything right now.
If yes, start to read the market, and within 6 months you should easily be able to make a decision on purchasing a house hack. I strongly suggest a Multifamily if the numbers work or a condo with roommates.
Cheers and good luck Sebastian!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.