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First-Time Home Buyer

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Sophia Reynoso
Pro Member
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1st Home evaluation

Sophia Reynoso
Pro Member
Posted Dec 6 2023, 00:57

Hi Everyone! 

Absolute newbie here. I want to put out some feelers on a house I am about to go to take a look at.  It's a 3bd 2 bath 1384 for $419,900 It's close to the local hospital so I am interested in buying this house and hopefully rent to travel nurses. The house is move-in ready with the exception I would like to make updates to the bathrooms and backyard I make an average of $ 80,000 a year and I have $20,000 available for down payment. Does this seem feasible? 

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Matthew Morrow
  • Investor
  • Pennsylvania
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Matthew Morrow
  • Investor
  • Pennsylvania
Replied Dec 6 2023, 03:55

Based on the information you provided, purchasing a house for $419,900 with an annual income of $80,000 and a down payment of $20,000 seems feasible, but it will depend on various factors. Your income is adequate for this price range, but remember that mortgage approval also depends on your credit score, debt-to-income ratio, and other financial commitments.

With a $20,000 down payment, you'll be putting down less than 5% of the home's value, which may require you to pay for private mortgage insurance (PMI) until you've reached 20% equity. This will increase your monthly payments.

Renting to travel nurses can be a good strategy, especially if the house is near a hospital. However, consider the costs of updating the bathrooms and backyard, as these can be significant. Ensure you budget for these renovations and any unforeseen expenses.

It's advisable to consult with a financial advisor or a mortgage lender to get a more precise idea of what you can afford and the best steps to take for your situation.

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Thomas Gray
  • Realtor
  • Washington
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Thomas Gray
  • Realtor
  • Washington
Replied Jan 24 2024, 11:53

Hello Sophia, I'm curious if you purchased the house? Renting to hospital employees is a very strong strategy. I have a few friends that invest near hospitals and I've only heard good things. Something to think about is purchasing a multi-family unit and living in one space and renting the others. Lenders can use income from the investment to help you qualify for the purchase. If you decide to owner occupied the interest rate will be lower than non-owner occupied property. I recommend finding a rockstar lender that will get you approved to purchase. 

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