I recently graduated college and got my first full-time job in the city I graduated in. By entry-level standards, the job pays well. Right now, I live in a medium sized city with a low-to-medium cost of living and would like to move out of my parent’s house.
One recommendation my parents gave me is to consider buying a home, then renting it out after leaving the city to help pay off the mortgage and other expenses. I am not sure how viable this is right now as 1) While my credit score is good, mortgage lenders may not be quick to lend to me unless I have a longer job history with proof that I can keep a job for an extended period of time, and 2) I do not wish to stay in the city for very long, and I have had thoughts of moving out after putting in a few years at my current job.
Given this situation, how viable is it to pursue buying a house outright, whether that be on my own or co-signed by an older family member? Is renting still a sensible decision, even if I may potentially have enough money saved very soon to afford a down payment on a house?
Buying my first house in a city that I will not stay in for the purpose of renting out
byu/besitomusic inRealEstate
Posted by besitomusic
2 Comments
Bad idea
Do you have experience being a landlord ?
Especially a long distance landlord ?
You have competent affordable people to replace light bulbs and unclog toilets and all that ?
Whatcha gonna do when the renters stop paying and refuse to leave ?
Any idea of this house will be profitable ?
Good morning news, most lenders are willing to accept your college career as work history because it helped you get employed. Potentially larger barriers are 1. Whatever you are spending on student loans and 2. If you don’t have a down payment. That said, I would never recommend buying if you aren’t planning to stay there at least 2 years (for tax reasons) and preferably 5 years (to maximize the chance you will sell profitably).
If a lender says you need a co-signer, take that as a sign that you aren’t ready.