So I finally got word back from my lender and got pre-approved for about $280K. Now that I have a solid number to work with I have to make some real decisions and I'd love to hear your thoughts...
First of... I am currently living/working in the Inland Empire, CA (Fontana/Riverside) . I am pretty confident I will be in this area for at least 2-3 more years. Not exactly sure where I will be after that time period, most likely closer to LA (family, friends, gf, all live in LA)
My initial goal was to "house hack" a duplex, but after some looking on redfin/trulia, it seems almost impossible to do with the amount I got preapproved with. That leaves me with 2 other options... look for a single family unit/condo or wait. This is where I'm stuck... I want to own property and I know I can probably find something for my price range. But like I said, I plan on moving closer to LA eventually...I'm scared I won't be able to rent out my place later, or if I do, if it will create positive cashflow... What would you recommend? Is playing the waiting game the smarter choice here?
Thanks in advance for any input.
In order to make a decision, you need just a little more research
Find out how much a place you would buy would rent for. Does this cover your payment with taxes . insurance, and a little for repairs? If not, I would hold out and rent for a little while longer. If it covers it, it may be a great investment long term, as long as you dont need the down payment for hte next place you are purcahsing.
With closing costs of purchasing (Loans are expensive) and closing costs of selling, you wont recoup your money most likely in just 2-3 years. I fyou buy a fixer and fix it up yourself- that may be different.