[USER]

I found today, I was qualified for just over half a million dollar house. I’m single, no kids, never married – one income. Hopefully I can buy a house in < 3 months, become a land lord and make my tenants pay my mortgage, so I can live like no one else.

[Carole]

I hope this poster is being sarcastic. Bring a landlord does come with liability as well responsibility to provide a quality living environment.

I am a millennial and have now owned 5 homes. I was a landlord and did house hacking for many years. After about 10 years doing that I sold the property. Don’t underestimate the work and commitment involved in owning a rental.

[Jessica]

Millennial as well. Husband and I got our first property during COVID. Turned it into a rental and now live in a nicer home and do mid term rental for one of our rooms. Hoping to build an ADU on our first property when tenants move out.

Goodluck!

& Explore these too: Debating about buying a house or condo where I rent instead of renting

[Heather]

What you qualify for is irrelevant. Buy way under that. Look at what your monthly payment will be and assume it’ll increase with property taxes/insurance. If you’re renting it out assume it’ll be vacant at least a month a year.

[Ryan]

Millennial here, just bought my first home with my girlfriend. We were approved for 600k. Interest rates are insane right now which killed our purchasing power. Used homes are insanely high right now too it’s terrible. We lucked out and bought a brand new construction home which the builder/lender was offering 35k to do anything we wanted with. So we had to use 20k of that to buy the interest rate down on an FHA loan to make it even possible to afford.

Bought at 462k @ a 4.8% rate. Honestly we’re blessed with this opportunity. If it wasn’t for the builder incentives we’d still be renting cause the market is just so jacked up, it hurts first time homebuyers like us cause of the rates.

Since you’re single, definitely your best bet is to buy a duplex and rent out half or buy a house knowing you have trustworthy friends to rent the rooms out to. Other than that just keep renting or living home with mom and dad and save save save until rates drop. Best of luck.

[Don]

Don’t buy up to what a BANKER tells you that you qualify for.

[Ashley]

I’m in my 20s and did something similar when I first purchased my house and got roommates. My best piece of advice is have a well thought out lease agreement/contract.

Don’t miss: Slowly saving for a house down payment in the next 3-5 years

[David]

Here is what I would recommend.

1) Make sure your loan includes property tax. It sounds horrible to not have it rolled into your loan

2) What you can afford and what you should are too different things! Make sure you feel comfortable with the monthly payment even if you house hack. I am looking in that range and 500k is roughly a 3.2-3.4k mortgage atm. That could be a lot depending on your income level/expenses.

3) Be careful about points. I had a lender show me rates with points and not tell me. They might try to sneak that in so ask about it explicitly.

4) This is a weird time to buy cus of rates so normally I would never suggest leaving 30 fixed. However, it is very very likely you will wont to refi in the next 5-10 years so ARMs might not be the worst thing atm. I would at least talk to your lender about it even tho ARMs scare the hell out of me!

5) Remember PMI goes away at 20 percent. I only put 10 percent down but thanks to a creative loan officer we did some 80-10-10 payment structure to avoid it. Ask about that!

Congrats!!

[Author]

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