Updated almost 8 years ago on . Most recent reply
Financial advice for a rookie
Hello friends,
So I'm thinking of buying my first property. The idea is for it to be a house hack (live in 1 bedroom, rent out the other ones). Here's the conundrum:
I live in Denver where the market is crazy hot. The property that I'm looking at is 1/2 duplex in an up and coming neighborhood and I have barely enough money saved up for a 4% down payment. I'm fairly confident that I can find roommates to help me pay off the mortgage. However, it feels like I'm putting all my eggs in one basket, leaving me with $0 on my savings account and an uncomfortable situation if something were to happen (health, fix something in the property, you name it). I once read that you should only invest your money after having a "cushion" saved up for these kinds of emergencies. Am I rushing into this decision? Should I wait, save some more and try again next year? Or do you think it's not a terrible idea to buy this property and start building equity? Let me know your thoughts!
Thanks!