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