All Forum Posts by: Connor Wege

@Connor Wege with 20% down you would be doing it on a shoestring budget and not have anything left for reserves. With conventional financing and 20% down, that would get you a property priced at $100,000 not including closing costs. Even in some of the most affordable markets like Indianapolis and Kansas City that we are in, that's putting you in lower end neighborhoods. Unless you have a way to bring in more capital, I would wait until you had enough to buy in a better neighborhood and have some reserves behind you. 

Hey Connor,

First I think it was wise for you guys to realize that renting was the best decision at this time. It is difficult when it feels like there is pressure to own your own home but I think there are a lot of situations where it makes sense to rent. My wife and I decided to keep renting for now because in the city we live in, if we bought a house it would more than double our living expenses, which would then greatly reduce the amount we could save and invest. 

I recommend David Greene's book on long distance real estate investing. I started looking in cities that were not too far but much more affordable. I ended up deciding Las Vegas was the best option and we ended up buying out first property last year. We put 28k down on a 140k condo and are saving up for our next property. 

I think if you wait depends on our goals, if you want to buy a small multi, then maybe you wait or prioritize getting a partner. If you just want to get your first property, then I would suggest research areas where you could get into with your budget. Good luck!

I agree with both @Taylor Dasch & @Account Closed. I think the right time to buy would be now. Find a good deal that you can move into and potentially put sweat equity into the property with a few renovations here and there. Once you have fixed it up, you would have gained equity plus interest rates may be different, could be a great time to refinance. Then you would have income to purchase another property and continue your journey on that way. 

In regards to not enough capital for a downpayment, you can get a gift from family and close friends that will increase the amount of capital that you have to qualify for a more expensive property. 

Another potential option is to purchase with low money down 3.00% or 3.50% and house hack with roommates as well. I know you mentioned you have a wife, so I am not sure how you both may feel about having roommates, but its an option. I know my wife would look at me like I was crazy 🤪. You could do this with a small multi family, 2-4 unit property. So technically you wouldn't have roommates, you would have tenants. Move out in 2 years and do it again. This could be a great way to continue to grow your portfolio.

I hope this helps! Goodluck!