Skip to main content

Buying first home: getting a place to live or a vacation property to Airbnb??

I’m 29, making about $82k a year in a HCOL city in CA. I have no debt no student loan with about $75k in assets (savings and investments combined).

My partner and I are renting an apartment for $2050/month. We’ve been thinking about buying a place of our own, with a monthly mortgage similar to what we’re paying for rent now. That way if the home appreciates in value (which is the case with CA as housing keeps going up), at least we can have some equity and the house can be another asset. Only concern is my partner and I aren’t sure whether we want to stay at our current jobs for another 5-6yrs.

I’ve also been thinking about purchasing a rental property to Airbnb. The monthly rent can be used to pay off the mortgage and maybe down the line this generates passive income for us. I’m leaning towards getting a rental home, here’s my logic: if we buy a home to live in, that requires us to always have a stable job for at least 5-6yrs. If there’s a career opportunity somewhere else, it’s a lot harder to relocate. Vs having a rental property, the ability to pay the mortgage doesn’t depend on us having a job as monthly rent will cover for that. In a few years once the rental property is paid off, we will then use the profit towards purchasing our own home, once we settle down with a steady source of income from our jobs.

Does it make sense to have a rental property as your first home? How much work does it go into managing an Airbnb? What are the risks that I should know about? I’ve also heard somewhere that there are tax incentives for first time homeowners but that only applies to residential and not rental property. So there’s that...

Does anyone have any experience in this that can give me some advice??

submitted by /u/bunnyrabbit91
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/k30hxb/buying_first_home_getting_a_place_to_live_or_a/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

Obtaining a real estate license as a hobby?

Hello, I am 24 years old - 2 years out of college and I have my main job. I was looking to get a real estate license (in California if location matters) as a hobby/for fun since I like real estate ever since I was in high school. In the past 2 years, I would go to open house in the weekends to look at homes for fun. I don’t plan to practice real estate full time as I have my main job but I am curious are there any benefits to this? In the future, I plan to own multiple properties and have rentals, so I was wondering if getting a real estate license can help me with it? Thanks submitted by /u/AlohVera [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1f0qx9i/obtaining_a_real_estate_license_as_a_hobby/
Post a Comment
Read more

Advice? Moved out of my primary residence and now renting

I moved out of the house I own in August 2021, I lived there for 8 years, I have been renting an apartment the past 3 years and renting out my house. My current tenant is moving out in September. I seem to have just missed the living 2 years out of 5 years rule for being exempt from capital gains tax and my house being a primary home. Any advice on what the best thing to do would be moving forward? Continue to rent out my house? I'm happy with my rental, but wouldn't mind buying another property down the road. I could sell my house down the road and try to do a 1031 exchange? Moving back in my house isn't ideal because it's an hour away from where I currently live. I could take a HELOC perhaps and try to buy another property and continue renting for the long term? I do have a 2.4% mortgage rate on the house so I don't mind keeping it for a while. Thanks for everyone's advice. submitted by /u/Ok-Top-7859 [link] [comments] source https://www.reddit.co...
Post a Comment
Read more