I think you should buy. The living expenses are the same whether you rent or buy. Utilities, insurance of some sort, cable, internet, etc.
The difference is, you could be paying for something you own and could build into a cash cow, or you could line the pockets of someone else who is getting their bills paid by renters. I like the idea of someone else paying my bills lol
Feel free to reach out if you have any questions :)
@Kade Honaker that is really dependent on what you want. If you buy a house you own it and will build some equity. But the downside is you give up a lot of mobility. Moving isn’t easy when you have to sell a house. I moved twice last year for better jobs and I invest out of state so no matter where I go I can keep investing.
Grant cardone talks about this concept a lot and I think it’s not something to overlook
I think it really depends on how steady your income will be. Maybe find a short term lease (something like 6 months) to help you get a grasp on the areas where you are thinking of investing as well as help you get some peace of mind on how your employment is working out.
I bought a REO/Fixer. Best decision ever. The equity you can force is life changing when starting out.. I’m not talking millions of dollars, but to a young twenty something 20-50k in equity/tax free gain after two years is a great chunk to start your investing career with! I like the house hacking thing people talk about too with the duplex etc etc.
Doesn’t sound like your parents are kicking you out just yet, so as someone who has been renting for the last 7 years because of school & moving away for full time employment, I say do your homework and due diligence and look to buy. Feel free to message me if you’d like to discuss further!
Dude, if you're moving out of your parents house and have the money to buy, I'd say that you're in a really excellent situation right now and I would de finitely recommend that you buy a house rather than renting! At the end of the day, renting means that you don't actually own anything, and while having a house will probably mean that you'll have to be paying a big down payment, if you can afford that, you'll be adding a huge asset to your name. If all things go South, you'll still have a roof over your head that a landlord can't kick you out of because hey, you're the landlord of the property you own! Just do your finances and find out what works the best for you mate!
You are in the perfect position to start your real estate investing career off on the right foot. I bought a house hack and was able to live for "free" when I left home. It doesn't sound like your parents are pushing you out, so:
- Take your time to understand your current market
- Become an expert in it
- Look and underwrite every deal that you may want to buy
- Connect with a real estate investor friendly realtor and be nice to him:)
- Sit down with a bank now and get pre-approved, make sure you have enough capital to pull down a deal, and if you go 3 or 4 units make sure you have enough post closing liquidity.
- Don't be afraid to write offers, don't just low ball, but if the deal makes sense, pull the trigger.
- Think about getting a mentor in your market, so you can "fact check" your numbers
- Go to your local BP meetup, you will often find your network there, this has been invaluable to me and my career
Answer this question: What is better than living on your own, WHILE having other people pay for it, WHILE starting your clock as an experienced real estate investor?
Best of success!
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.