Looking for Ventura County, CA advice on my plan
Hey guys,
My name is Nitit Chartuprayoon. I've been renting in Camarillo for almost 4 years now, and I work at the naval base. I am a first time home buyer. I know that interest rates are low because the house prices are high, and it's vice versa. I have a budget of around 575k, and I have 10% down. My credit is in the 800. I qualified for a conventional loan. Since interest rates is at an all time low, I dabbled in the idea of buying a SFR to live in, rent out the other rooms, and eventually keep it long term as a rental property due to low interest rates. I have mostly been looking at Moorpark and Simi Valley area, and originally ruled out Oxnard because of school district. Camarillo, Thousand Oaks, and Newbury Park SFR tend to be out of my price range. I haven't look too much into Ventura since I thought Moorpark and Simi Valley would be more attractive since they're a bit closer to San Fernando Valley and LA. However, I'm finding it pretty hard to get my offer accepted since it's a huge seller's market, and there is an inventory shortage at the moment.
My question is what other areas should I look into? I know Santa Paula is developing more and more with new homes being built, but it seems to be just based on potential. I know that Oxnard has pocket of areas that are good, but the school district isn't highly rated and that would have an effect on the appreciation of the property. Also, I've heard both sides and read a bit on whether to buy now or wait for the dust to settle with COVID. I thought about buying now as eventually turn the property into rental property because the interest rates are so low at the moment. Would that be a good idea? I know if the price drop, then the interest rates will go up and I will, more or less, have the same monthly payment, but will gain more equity. Nobody really knows for sure how big of the drop in price will be or how much foreclosure will happen. I didn't want to try to time the market, but I'm also not in a big rush to buy a home. I also don't mind buying a fixer upper in a better area with low crimes, and good school district since it's easier to fix a house than make an area better. Should I keep looking around, and also expand my search area? Or should I wait until after COVID ends to see what is going to happen?
I am just starting out and doing my research, but the strategy I was going with is house hacking a SFR to buy and hold to eventually convert to rental property with the low interest rate. If anyone has done this, then I would love to get more information on it from someone with experience. I read since you bought the home for primary residence, then there would be some complications to convert it to full rental, but there is a way.
Thank you for your time!