Should I buy a house right now?

[Torrey Wolbert]

I just lost a deal due to a COVID layoff recently, I was two weeks out from closing and had all my tenants lined up (house hack) and it was going to cash flow $400 a month! I’ve been back to work for a few months now and I’m back to square 1.5 in the process. I’m pending on a home right now in a high appreciation neighborhood with a lot of potential to become a really nice flip. My problem is I won’t be cash flowing on the house until I renovate it..

My options are to move in and pay around $500 towards the mortgage every month out of pocket and to pay for basic repairs on top of some renovations or I can move in with my friend to save money wait for things to get more stable and potentially miss out on record low interest rates.

[Blaine Alger]

Without seeing the actual #'s and details behind the deal I cant give you my best response but i'll try.

Normally, I would advise a newbie  to run from a deal like this because it is not cash flowing and  it'll require a rehab which can be hard for someone to manage who is starting out. BUT... I see you do have some construction experience and have a working knowledge of what it'll take to get the rehab done.  This definitely gives you an edge and if you feel confident in your ability to do most of the work by your self to save money, then i say go for it. 

Another thing to consider is the $500/ out of pocket to pay the mtg. I would compare this to what you would be paying for rent and if you are able to live cheaper owning compared to renting, then I would consider that a win.  

Message me if you have any other questions. Best of luck.

-BA