Looking to buy a single family home or duplex in north central Illinois or in Washington state. Advantages to Illinois include more affordable home values, lower mortgage payments, cheaper cost of living, closer to family/friends.
I make 30-40k a year from seasonal jobs as a restaurant server. 2020 has been a bad year for the hospitality industry, but I have hope that by the summer and next fall the industry will start to recover. If it doesn't I will try to find a job where I an make at least $20 an hour. I have 20k set aside for the downpayment, fees, and basic repairs and cosmetic work. 750 credit score.
My big decision is where to buy my first property? Should I buy in Illinois where my monthly payment will be lower, and I can house hack a single family or duplex? Or should I buy a single family in Washington state, where I will be working and want to live on a more permanent basis? It also looks like the long term appreciation might be more in than in central Illinois.
Investor · Quilcene, WA · Member since 2017 · 230 posts · 169 votes
5y
What part of WA state you are looking at will influence your decision. Seattle metro is a whole different world than Moses Lake. I have seen 1 bedroom condos in Everett going for around 150k but a SFH is unlikely. Even Moses Lake is getting pricey and so is Spokane. So where in WA you are will make a difference.
If you are wanting to house hack with the duplex in Il but don't want to live there then house hacking won't be very satisfying, forcing you to live where you don't want to.
Good for you for saving up 20k on a low income. Look around your part of WA and make sure you understand what you can buy and if there is a way to house hack it. You should also talk to lenders since that will tell you what you can afford. If you really want to buy an investment property, the plus of IL is that you have friends and family to kind of keep an eye out for you and you know what areas are good/bad. Long distance management can be difficult, especially if it is your first investment unit.
In your situation, I would house hack in WA state. There’s a few flavors of house hacking, pick one you’re comfortable with. You’ll get to know landlording, you’ll be investing your rent money in yourself, Most areas in WA are appreciating well- lots of reasons. I wouldn’t want my first property to be out of state.
Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
5y
@John Powers, to answer you question, you may need to narrow down the cities you are interested in WA state. Prices in Seattle for example are typically more than smaller cities north or south of Seattle.
For your question of whether to live in WA or Illinois, if you will be working in WA state on a permanent basis, buying in WA state might work better for you.