= 27d567bc2d48d9f40e9ccc20ea370b15)
ephion comments on Open Thread for January 8 - 16 2014 - Less Wrong
You are viewing a comment permalink. View the original post to see all comments and the full post content.
= 783df68a0f980790206b9ea87794c5b6)
Loading…= b715d02e85f7b3b4ae65ca3d3e450868)
Subscribe to RSS Feed
Powered by Reddit
= f037147d6e6c911a85753b9abdedda8d)
You are viewing a comment permalink. View the original post to see all comments and the full post content.
Comments (343)
I am considering a possibly risky financial move, and not sure that it's a good idea.
I am planning on going back to school full time next year (getting a BS Computer Science so I expect to have a big pay raise), and I am considering purchasing a 4br house and renting out two of the bedrooms to cover mortgage payment + maintenance costs. I can do this at well under-market rent pricing (ideally offered to friends or romantic partners), so I don't feel like it'd be taking advantage of people (rent in my city is vastly overpriced and home prices are very cheap). However, I'd need to take out about $100k of debt, and I'm planning on quitting my full time job to focus on school.
I'll be getting student loans to cover living expenses and tuition (planning on living very frugally and saving most of it to pay off when I'm done), plus I'll have enough savings to cover expenses and my credit score is quite good. So I'm convinced that I'll be fine financially, but I'm pretty sure that no bank will give me a mortgage without a full time job. This necessitates tricking the banks into giving me a mortgage and then quitting my job once I'm moved in.
I'm estimating that this will reduce my monthly expenditure by $300 ($7,200 spread out over two years required to get degree). That is more than the fees involved in purchasing a home, and I'll either resell the property or continue to rent it out after I'm done.
Any thoughts on this situation?
You may be underestimating the amount of work involved in being a landlord. If you find financially stable, reliable, non-destructive people, it's a nice income stream. Even so, they will expect you to fix problems sooner than you might get around to doing it for yourself. You probably shouldn't count on having your rooms rented for every month, you might lose a tenant and not have one ready to replace them immediately.
All this is general knowledge. There's probably information somewhere about the expected costs to being a landlord.
It still might make sense to buy the house.
Thank you! I'll take those factors into account.