Is buying a house in your 20s really a smart idea?
- Thread starter BrothaZay
- Start date
if you live in an low income area yeah
So you make like 200 off that house right. If it single family home.
should have flipped them on the rent to own and ask for 5k upfront. What I found out is most ppl never fully pay off a rent to own so you get the 5k upfront with the reg cashflow of the 1000 or so a month with bring you to a 10.+ cap.
Second if you have a house near the beach or something that bring folks into town you can flip the house as a monthly vacation home. 4k upfront to rent for the month, yes you have some party but with the 4k upfront you have the money to make the repairs, like I said it's well over 10.+ in cap.
Third you have a place by school you could rent it out to students, thing is 4 bedroom can be worth 2000, since each would go for 500 a pop. Best thing about student housing is that you make the parents cosign for them so you get your money no matter what. Also well over 10.+ in cap.
The worse thing you could ever do with single family home is rent it out as is. You nearly have good cashflow coming back to your pockets.
I actually break even on the house, and this is for two reasons:
1) I want the rent at an affordable rate so that I can always keep tenants in
2) they're paying my mortgage for me.
I'm perfectly happy with the property manager, they handle everything. I was going to sell the home a few months ago, but decided against it.
and nah, i'm not renting out my house to different room mates - you asking for all kinds of dumb problems doing that. Have a good famliy to rent out with good rent history and you should have minimal problems. My goal is to not turn a quick buck, but the contrary to build equity over long term with good tenants. It's making cash on its own in equity.
Don't listen to the financially illiterate brehs in this thread, a home that will grow in value is a good investment. Buy in an up-and-coming neighborhood, a neighborhood being gentrified, or a neighborhood being revived. Older homes that need less than 45k of work are usually a good place to start.
I know if I was currently in the market here in Cleveland I would buy houses on the cusp of Cleveland Heights and Cleveland near Case Western, or in a Black neighborhood by the Cleveland Clinic both areas which have had persistent growth the last few years, and a projected to have new growth alongside the urban development surrounding them.
I know if I was currently in the market here in Cleveland I would buy houses on the cusp of Cleveland Heights and Cleveland near Case Western, or in a Black neighborhood by the Cleveland Clinic both areas which have had persistent growth the last few years, and a projected to have new growth alongside the urban development surrounding them.
Not understand the root issue brehs
Homes dont automatically "grow in value" and that value growth isnt something one can control single handedly.
Take advice from a breh in Cleaveland brehs
Smh
Not only is a house an investment, it's a bartering tool. When you have a house it has tax breaks, you have access to other type of credit, and works wonders for your credit profile. Sure it has its cons over having an apartment like you have to do your own repairs and maintain your own yard but having a house by far has more pros than having an apartment. Most of the time your mortgage payment will be less than what you're paying for rent too.
Only time youre really getting tax breaks is if you dont make any money or you pay a ton in property taxes/interest.
Dudes are ignoring this thread is about a 20 YR OLD.
People mention mortgage is less than rent yet have yet to talk about having to be 100% responsible for maintaining and repair of your home.
Yall can listen to these goofs if you want but like i said if you are just looking at rent vs mortgage cost you definately are not ready to buy a home. You HAVE to Examine YOUR situation and all these goofies talking about THEIR SITUATION as if it is the Standard yall are going to be set up to lose.
I enjoy being a home owner but I damn sure wont talk like its a simple task. My mortgage is less than what i have paid in rent in the past yet owning a home has been much more expensive.
A person in their 20s has to factor in unforseen cost, their career because at the end of the day you may get a better opportunity elsewhere and having to worry about selling your property or rent it out is another beast in itself.
Like i said, listen to these goofies of you want
Ken Piffey Jr.
Pro
It's all relative. Sure a home can be a risky investment relative to other investments that generate income depending on the location you buy in and the length of time you plan on owning it. Relative to renting? It's a great investment.
Sunalmighty
Superstar
If you are in the position to purchase anew AFFORDABLE piece of property, make the move. Always keep bread in the bank and good credit. You never know when an opportunity will present itself. My mom's passed up the opportunity to purchase my grandmother's house. She would have netted about 400k with the price increases over years time, assisting her with retirement. She was so fearful, she passed up the opportunity. Well, she never lost her job and is still working that 2nd one as well. Too many of our people lack faith to make moves, not too mention the niccas that are in position to make moves but would rather buy a new car instead. Make sure the LOCATION is right (if you are buying to love in it). If it's rental property, remember you don't have to live there. I had a strong desire to own my 1st home before 30, it happened at 29. I renovated it, held it for 6 years and made a lot of money. Used my 401k too, so I didn't have any credit card debt. I paid myself back.
As a recent homebuyer, no.
If you are not going to be living somewhere for a long time, or you don't have the $$$ to do maintenance, or you are buying in an area on the decline, shyt's not gonna go well.
BaldingSoHard
Banned
What's the payout after 30 years of renting?