Should I buy real estate if I plan on moving

Question

I have decided that in less then two years (around Apirl 2023) I will be moving to Texas and this December I will graduate from college and estimated to make 50-60k a year with a job I have lined up. I currently live in a apartment paying 825 for rent and 10k saved up for real estate. My question is when I graduate should I look in my area for a duplex-4plex to live in one unit and rent out the other to save money? Or should I stay where I am and save all of the money for when I move to Texas and buy a duplex-4plex out there.?

P.S if I buy a duplex where I currently am I plan on keeping it and renting my half out when I move.

Doug Spence · Answer

When doing a BRRRR, typically you will BUY using cash (private money and hard money are common), REHAB, RENT, and REFINANCE into a long-term 20 or 30-year mortgage. I have never heard of someone doing the refinance as an FHA loan, but it might be possible. You would just need to get in contact with a lender who does FHA loans and tell them your plan so they can tell you if its doable or not.

Kyle Keller · Answer

@Michael Jenkins

I would buy now, especially if you can find something that will break even when you move. The best time to plant a tree was 20 years ago, the second best time is today.

Michael Glist · Answer

So I think buying now is a great idea because you can always turn it into a rental when you move. The only potential roadblock would be that you do not qualify for another home due to your DTI when you move. This would just mean that you either need to sell your current place or rent when you move. But overall I think buying now would be a great idea.

Michael Jenkins · Answer

@Douglas Spence thank you for commenting and I plan on doing a FHA loan for 30 years, also correct me if I am wrong but I was under the impression you are able to do the BRRRR strategy even with a FHA loan.

Doug Spence · Answer

@Michael Jenkins If you purchase a duplex where you're living right now, what's your plan for financing it? Will you do an FHA loan or are you planning to do a BRRRR? I like the idea of buying a duplex now if the numbers make sense, then buying another 2-4 unit where you live next, but I'm just curious how you plan to pay for them.

Michael Jenkins · Answer

@Peter Mckernan thank you for responding to my post and I will ask members of the military that question I never thought to ask that. But I do intend to have connections where I am now my parents and some friends will still be living in the area. I believe me moving will be permanent but I do think I will frequently visit at least serval times a year.

Peter Mckernan · Answer

@Michael Jenkins There are a lot of military service members that do this because they will be in a place for awhile due to their base and then move to another location after a few years turning that house into a rental. That means multiple homes in different locations across the country, I would ask them first how they have been able to be successful at managing them etc.

My suggestion if you are not going to move back to your location that you are in now, or if you are not going to buy multiple properties in that location then I would say save up till your are going to move in 2 years or less and then deploy that money once you get to that location/region.