Should I even consider a property if I plan on moving in 5 years?

4 Replies

My plan is jumping to another career field within 3 years so more than likely that would mean me moving to a different state. I am currently living in an apartment and pay just about $1000 a month for it right now, I figured why not shell out $300 more a month or so for a 3-4 bedroom home (Texas is kinda cheap I suppose) and rent the other rooms out while living in it, and if I happen to move then I would hire a property manger to take care of things. Is this even worth it or a good plan? 

It is a great plan! It is called house hacking. Just make sure that you will have no problem covering the entire expense by your self. Then the money that you generate from roommates is all gravy. I would save every penny of it to get into your next property where ever your new job takes you. Spend some time a get to know a few property managers in your area and make sure what you are buying is an easy to rent property that commands a strong rent. I would also want a home convenient for them to manage so you get the best service. If it is way out of their service area it will not visited as much.

Originally posted by @Tom Rolph:

It is a great plan! It is called house hacking. Just make sure that you will have no problem covering the entire expense by your self. Then the money that you generate from roommates is all gravy. I would save every penny of it to get into your next property where ever your new job takes you. Spend some time a get to know a few property managers in your area and make sure what you are buying is an easy to rent property that commands a strong rent. I would also want a home convenient for them to manage so you get the best service. If it is way out of their service area it will not visited as much.

my biggest fear is that my #1 plan is to go to medical school in which I will have pretty much be like $300kish in debt at the end of it and will have absolutely no income for 4 years. From what I have researched, I can get a 3 bed 3 bath house for around $230k in the area that is relatively new (>2000), with FHA it'll be around $1650 a month with home insurance and property tax. IF I were to manage to rent out all of the rooms for $750 (right around average for the area), I'll net $600 a month. It's not so bad but it is a big if, especially if I have the potential to have zero income.

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@Arthur Yu You could invest with a partner that could help be a safetynet until you build up some reserves. If a partner put up the 20% down payment you would have less expensive financing and better cash flow.

Think about picking up properly where you will be going to school. Lots of folks rent houses by the room to students which creates higher cash flow.

Some states consider you a resident if you own a home. That could help reduce your tuition.