Med school, Real Estate, and moving. What would you do?

8 Replies

Hello BP,

I am looking for advice for if you were in my shoes.

This would make for a better conversation, but I have nobody to talk to aside from the good folks here on BP so bare with me.

I am 23 years old and married. 

My wife is currently in her last year of premed and next summer we will be moving to wherever she gets accepted into medical school. (Not sure where that is) 

I make about 60k a year and put 10% into my 401k and she works summers only and makes say 5k.                 I am on a 3 week on and 3 week off schedule where I work overseas, so I can move wherever I want and keep my job (layoff and contracts permitting of course)

So far we have payed for her schooling out of pocket and haven't taken any loans, however when she starts medical school in about a year we will have to take out student loans which will be pretty substantial.    (I do have a truck loan for 285 a month)

I have about 20k in the bank and about 30k in my 401k. In a years time I hope to have an additional 10k saved.

When we move I want to buy my first house. I have been reading BP books and have been listening to the podcasts so when the time comes we can purchase our first house with exit options (flip or hold) depending.

Only one med school she applied to is in Oregon, so if she doesn't get into that school we will be moving out of state, possibly as far as Ohio or Texas. If we do move out of state at this point we want to move back at the end of her 4 years in med school.   

Has anybody else bought investment properties while their SO was in school? Should we just focus on our first house for those 4 years or do you think investing is still an option. If we do a FHA loan with only a 3.5% down we would have to pay PMI but we would have enough left to buy an investment property depending on how expensive the city is.

So there are the basics. Feel free to ask questions as I am sure there is a lot to add. I want to make sure I am taking everything into account and have every angle researched by the time we make our move. 

Thank you for all your time, I really appreciate it! ~Steve

Welcome @Steven Torrez . Investing is ALWAYS an option... Have you though about a small multi family and renting out the other side?

Well, you have to live someplace so if it's possible you should invest rather than rent. You might look at a multi family where the rent can make most or all of your mortgage. In 4 years a lot can happen but this way you can be saving more for your future.

George Hermann, Real Estate Agent in NY (#10401256571)

Hi, 

You're busy! My suggestion is to not nite off more than you can chew, especially not knowing where you'll be after her med school. If her med school is an affordable markey like Ohio where I am, I would suggest buying a duplex. This gives you 2 properties under 1 roof and one loan. FHA financing can be used for this. You can live in one unit and can rent the other to offset or even cover your mortgage payment. This gives you several benefits: the tax deduction of home ownership, builds additional credit, can build equity to leverage for future investing, and the ability to write off expenses repairs and upkeep. When or if you decide to leave the area, you could rent the 2nd half and increase your rental income and hold it long term, or sell off with or without renters. Even though you have to pay PMI, the FHA calculation for PMI is lower than a Conventional loan. They're also less strict on credit and debt/income ratio so it's easier to qualify. This gives you a rental property with minimal down, and many areas have grants for first time home buyers which could mean zero out of pocket! You can keep the FHA loan if it makes sense to if you move, you'll just need a Cinventions loan. One can only have one FHA mortgage at a time. Let me know if I can offer any more advice, especially if you end up in Ohio! Good luck!

Originally posted by @Nick Britton :

Welcome @Steven Torrez. Investing is ALWAYS an option... Have you though about a small multi family and renting out the other side?

 I have been thinking a lot about that and am completely up for doing it. The biggest thing is the small window from when we get out of Oregon to when we need to be moved in for the start of her medical school. 

@Steven Torrez  Depending on the city you move to, you should look into a multi-family property. You can live in one and rent out the other. Essentially living rent free. So with the savings you have, you get both your own property and investment property. 4 yrs is a long time. This strategy will save you money, so when you move after med school you can use the savings to buy the next property.

Good luck.

Upen Patel

Federal NMLS# 1374243

Don't rush the small window and think you have to be in there asap. Find a place that gives you shorter term arrangements if need be and rent. There are several Ohio property managers, investors, and agents here that should be able to help you out before you go. Where would you move to in Ohio?

You should reach out to

@Peter Lohmann undefined in Columbus if you move there. Him and his partners do brokerage and property management and could potentially be a good resource.

Thank you everybody who commented! I will definitely take everything to heart. Hearing everybody offer suggestions has made my thoughts feel relevant and has given me hope for investing. 

And to answer your question. One of the schools she applied to is in Cholumbus Ohio so I will definitely reach out if she gets accepted there. 

O-H!  Sorry I couldn't resist!  Good luck on all counts! 


Originally posted by @Steven Torrez :

Thank you everybody who commented! I will definitely take everything to heart. Hearing everybody offer suggestions has made my thoughts feel relevant and has given me hope for investing. 

And to answer your question. One of the schools she applied to is in Cholumbus Ohio so I will definitely reach out if she gets accepted there. 

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