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1st home purchase advice needed

Hello, we are looking for advice for a first time homebuyer. We are moving to Corvallis, OR later this year for graduate school. At a minimum I’ll be there 2 years but possibly many more as it could be a permanent move. Trying to decide if I should buy a house (I’m 34 and have always rented since I’ve moved around a lot). It would be with the idea that I would turn it into a rental (using a prop manager) if I were to leave after 2 years and consider it a long term investment. Obviously I could also rent an apartment much cheaper than buying a house. I’d take on a couple roommates while living there but would still pay more than renting. Worse case I leave in 2 years and the mortgage is more than rental income. Rents only fetch about 1100 month for a 3br house which is shy on the mortgage by a few hundred not to mention upkeep and vacancy. The problem I am having is that I’m an anal engineer and there are so many unknown variables with rents and inflation and home prices that it’s difficult to make a determination if I should take the plunge or just put the extra money into the stock market with my other investments. I’m not necessarily looking for anyone to tell me a yeah or nay but does anyone have any helpful advice for how to make a smart decision. I have enough cash in the bank to deal with unforeseen issues but want to put my money where it will do the most good. I’m not looking to make a quick buck. Any help is appreciated. Thanks. by marcsandoval986 from Corvallis, Oregon. Aug 4th 2015 Reply


Dee Robb (drobb_576_239)
#28 ranked lender in Oregon - 6 contributions

The Corvallis area is definitely a great place to have a rental. They seem to never sit for long if at all. What price range are you looking at? How much is your down? I'm asking this question to calculate payments etc for you to show you the difference.

Aug 4th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

In my opinion (28 year real estate investor), long distant landlords rarely work out.. So i would ditch the idea that after 2 years you're going to rent it out if you intend on moving out of the area.. Property management will cost you 10% or more of your rental income, and the simplest of repairs are done by expensive contractors, not handy men.. I've seen countless folks get burned by doing the long distant landlord thing, and you can verify this by a simple google search. (Even Dave Ramsey says don't do it) But buying with the intent to sell isn't really a bad idea.. If you see an average appreciation of say 3.5% to 5%, and you have help with the mortgage with room mates, then after 2 years or so, you could benefit. The benefits would be even greater if you purchased a fix up type property, and did your own improvements in your spare time.. You would have 2 years to make the home "Sale Ready", and if you got an extra 10% to 20% because of your efforts, it can be even more beneficial. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Aug 4th 2015
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Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 597 contributions

Corvallis is and always will be a college town, renters will not be a problem to find. However your turn over in tenants will be high and you will replacing and fixing items more often than not. That all being said I think the 2 year investment in real estate may not be a bad thing, you more than likely will get a tax deduction for the mortgage interest you pay, if you use a loan. I would talk with a tax accountant to be sure but it could be pretty safe investment that would be easily turned after you complete grad school. GOOD LUCK

Aug 4th 2015
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Jason Bennett (jbennett)
#104 ranked lender in Pennsylvania - 67 contributions

BUY, BUY, BUY!!! I would go FHA with low down payment...Owner occupied 2-4 unit property...you can live in property with rental income coming in!!!. Before you move out you can consider a refinance to remove pmi and lower rate if possible at that time.

Aug 5th 2015
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Chris Barry (TheLoanDoctor)
#45 ranked lender in Oregon - 40 contributions

Hi Marc,Give me a call to discuss this in greater detail.There's a lot of options and too many moving parts to cover everything adequately with your questions and concerns. We'll need to go into greater detail and dicuss tax implications and such as well.

Aug 5th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

Reminder that you also have to qualify based on your income, and it needs to be "permanent" or a position that will last more than 3 years after the closing.

Aug 5th 2015
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