Has anyone bypassed renting their first apartment and just went straight for a house?

I wanna get on track to becoming a home owner within the next 2 years. Start teaching in the fall making a decent salary, have no loans, live at home and really my only debt is whatever I decide to rack up on my credit card each month. If I move in with my girl, rent for me would be $500 a month which is tolerable. Grad school will basically be paid for, I'll only have to put up $8,000 which gets subtracted from my paycheck over two years and the DOE covers the rest so no loans will be needed. I'd get all that money back and then some just by getting masters so it balances out. Would like to get a hustle or two going to add some extra bread each month. Goal is to also be an adjunct professor on the side when I finish grad school. I'll be able to make a decent second wage without slaving over a ton of hours once I do that.
 
just wait for the economy to crash in the next few years... look for foreclosures or short sales.  Buy yourself a house.  Buy your momma a house.   
 
Being a homeowner with OPs student loans is doable. 

Here is a guesstimate of his DTI based on what he has said so far:
 

Let's assume he makes 3,000$/month. 200$ student loan debt/month + 100$/month CC debt for total = 300$ which is 10% of 3,000$. (Numbers made easy for convenience)

With this estimate his DTI is 10%, with FHA guidelines, it depends on his credit score to determine his ratio (500-620 credit score=43%,620+=57% DTI ). 

He should have comfortably roughly have 1,000$+ to spend on mortgage/house related expenses. With 20% down as he has predicted, he should be able to get a place around 200k.

By contacting local lender, can get exact #s on home buying power.

Note: I don't know his actual finances and guessed/estimated #s. I am not a lender or a broker
 
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I had 27k in loans and i will pay that off in September. Took me 3 years, my car is paid off too. I will debt free with immaculate credit by 26.
personally I wouldnt recommend getting a mortgage. You're still young you dont know where you will be in the next 5 years. Could be out of the country or across the US. having a mortgage will solidify where you're at, at an early age.
 
My friend graduated in 2007 and has been working and saving, living at home.

His girlfriend has done the same thing since 2009.

They are now married and have been living at his parents' house rent free saving for 3 years.

They'll be able to nearly buy a house straight up when they decide to because they both live EXTREMELY modestly.

He has always maintained that he wanted to buy a house immediately rather than renting.
 
I recently graduated and couldn't see myself going into debt for another 15 (or 30 :x years) just to own a house when i'm 53. I'll continue to share an apartment to keep rent low, knock out these loans, and invest the rest. Good luck OP
 
360waves said:
You're still young you dont know where you will be in the next 5 years. Could be out of the country or across the US. having a mortgage will solidify where you're at, at an early age.
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Reading this thread this just hit me. Honestly I'm going to stay put and keeping saving. My DTI IS 17% btw.
 
There are ways to reduce the length of the mortgage. One is to pay bi-weekly instead of monthly. You end up making an extra payment each year. That alone brings you down to 22-24 years. Then if you add another payment, say from tax refund or wherever, you can get that time down to about 16 or 17 years. I discussed this with a Well Fargo professional last year.

Time moves very quickly folks. If you buy a place, you can always rent it out and move away. It can be managed for a percentage of the rent. Look very closely at owning. If you go FHA, you will need 3.5% down, not 20, unless you just want to dump more cash into it. There will always be a need for housing. Take advantage of it.
 
AntBanks81 said:
There are ways to reduce the length of the mortgage. One is to pay bi-weekly instead of monthly. You end up making an extra payment each year. That alone brings you down to 22-24 years. Then if you add another payment, say from tax refund or wherever, you can get that time down to about 16 or 17 years. I discussed this with a Well Fargo professional last year.

Time moves very quickly folks. If you buy a place, you can always rent it out and move away. It can be managed for a percentage of the rent. Look very closely at owning. If you go FHA, you will need 3.5% down, not 20, unless you just want to dump more cash into it. There will always be a need for housing. Take advantage of it.
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Economy crashes I will buy a few rental properties
pimp.gif
I'm ready for it.
 
You can always buy an investment property. When I'm ready to move out of my duplex, the rental will pay off my mortgage and net me 700$/month if I moved out today. I got a huge refund from the tax break and increased my withholding at work so I make a couple hundred more per paycheck. I'm building equity in my home and home price has went up 10,000$ since buying it. I plan to refinance to 15 yr mortgage and by 45 yrs old I'll be making 3500$+ in rental income when it's paid off/ month.

The richest people in the world either have stocks or real estate.. Or both
 
Let em know Pdino. I wish I would have bought a duplex but I didn't want to live in SE lol. Real estate is where it's at, once I'm ready to move I will be renting out my townhouse netting about $600/mo.
 
Pdino said:
You can always buy an investment property. When I'm ready to move out of my duplex, the rental will pay off my mortgage and net me 700$/month if I moved out today. I got a huge refund from the tax break and increased my withholding at work so I make a couple hundred more per paycheck. I'm building equity in my home and home price has went up 10,000$ since buying it. I plan to refinance to 15 yr mortgage and by 45 yrs old I'll be making 3500$+ in rental income when it's paid off/ month.

The richest people in the world either have stocks or real estate.. Or both
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This is all really foreign to me. Where did you learn about this stuff? Any good "how to" books or anything I can check out?
nerd.gif
 
 
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Jay Patt said:
I'd worry about getting your loans paid off rather than simply handled.

Really all depends on how much you have in loans though. 

If it's not much, then id say that's a pretty smart move. 

Still in college, not an expert.
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Nuff said.

OP

Get your loans in check fiest. You are wildin for NOT talking to your parents first. They will give you a better answer.
 
BeezyGotSole said:
 
Economy crashes I will buy a few rental properties
pimp.gif
I'm ready for it.
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if the economy is in the dumps how would you pay for all those rental properties?  Occupancy rate will probably be down so you'd have to come out of pocket for the mortgage payments and other expenses
 
millenial said:
 
if the economy is in the dumps how would you pay for all those rental properties?  Occupancy rate will probably be down so you'd have to come out of pocket for the mortgage payments and other expenses
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There are more renters than homeowners , statistically this number is rising and if there is another big crash like people keep calling for it will make even more younger people never want to purchase, which is great for me. Occupancy rates are factored into my numbers when purchasing rentals, if the number don't make sense I won't purchase.
 
BeezyGotSole said:
 
There are more renters than homeowners , statistically this number is rising and if there is another big crash like people keep calling for it will make even more younger people never want to purchase, which is great for me. Occupancy rates are factored into my numbers when purchasing rentals, if the number don't make sense I won't purchase.
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but if there's another big crash it would mean more people losing their jobs and not being able to pay their rent
 
millenial said:
 
but if there's another big crash it would mean more people losing their jobs and not being able to pay their rent
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Everyone doesn't lose their job, I would be purchasing post crash and I would be putting in tenants with jobs and with great credit and rental history.
 
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