Buying Property for Masters Year CWRU

3 Replies

I am currently a soon to be senior at CWRU planning on staying for a fifth year for my masters. I am interested in buying a multi family near campus (within a mile or two) for my fifth year. I realize that I can do the FHA loan. My scenario is that my current lease runs out July 31st, 2020. I am wondering if I find the right property when should I start closing and making real progress on it. Is there anyway to buy the property on a set date through a contract or something?

Let me know

Noah

The date of possession is always stipulated in a purchase agreement. However, things happen. There is a good chance your FHA lender will have last minute conditions that may or may not stall the closing. Also, the current owner, may have best intentions to move out on the scheduled day... but then have something come up that prevents him moving.

Do you live in the Cleveland area as your permanent residence, or are you an out-of-town guy?  What is your motivation for buying?  Have housing for a year of college, does not seem like a solid reason for buying a house.  Further, as a CWRU student, you will have plenty to keep you busy, without the stress of being a new owner of an investment property... which can be (will be) a lot of work.

If you intend to buy a multi-family near campus, I recommend doing it as soon as possible and well before you are ready to move in. Rent the place out, using a month-to-month lease for the unit that you plan to take for yourself. This keeps your options open. You will be able to store your stuff in the basement until you have everything figured out.

Best of luck.

Bob

@Noah Mehrle Hi Noah, you can start looking in advance to see what comes on the market/what you like. Usually people close within a month of signing the purchase contract and take posession but theres always a way to work out a deal. You can even start looking right away and see if your landlord is willing to negotiate your lease terms (i.e maybe you can replace yourself with another suitable tenant).

Theres plenty of duplexes by CWRU, I did something similar and own a duplex by CWRU that i house hacked while attending jcu. definitely saved me a ton of money and has taught me so much! feel free to reach out if you have any question.

@Noah Mehrle doesn't hurt to start looking now and get a feel for the market. Depends if you are ok with paying a lease at the same time as owning. I tell my clients 2-3 months. A few weeks for a serious search and 30-45 days for closing. Much further the that and then you may have issues with rate locks. Also would suggest getting a hard approval (vs. a standard pre approval) so that are good to go. (Also gives you an advantage in a multiple offer situation).

Good Luck on your search!