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Affordable house for new attending?

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  • #16
    Maybe find a reasonably nice house for sale that has been on the market for a while, and then offer to rent with the option to buy in a year. Many sellers will say no, but there are some sellers out there who would say yes. You may have to try several before getting a yes, but a creative solution might be possible.

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    • #17
      Was in similar situation.

      1. Try to find rental, if you happen to get lucky and find one jump on it

      simultaneously look for a house.

      2. Have your realtor show you "forever houses" in a good neighborhood/school district that make your wife happy.
      AND
      3. have realtor show you smaller under budget livable houses. A house that you could live in a for a few years while you think about a "doctor house". If market goes up and you want to leave you could decide whether to sell or rent. If market goes down and you want to leave, rent it. The key to this type of house is to focus that the mortgage cost would be at least cost neutral to a rental income.

      The above is what we did. We had no rentals at all we could find and were looking at houses, suddenly found a 1 year only rental and jumped on it. We continued looking for #2 &#3. Put an offer on a #3 didn't get it then ultimately found a #2 and currently live there...

      It's ideal to rent but some markets are just not rental friendly right now.

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      • #18
        Originally posted by White.Beard.Doc View Post
        Maybe find a reasonably nice house for sale that has been on the market for a while, and then offer to rent with the option to buy in a year. Many sellers will say no, but there are some sellers out there who would say yes. You may have to try several before getting a yes, but a creative solution might be possible.
        This.
        Some sellers "need the cash" and some can, in a pinch, compromise. A nice house that you want, how about a lease with a purchase option? Some great rentals are only via word of mouth. Yes, a realtor can actually help by knowing the seller and the situation. If you think an internet search is the only source of information, well hire someone to find you a place.

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        • #19
          like others i am finding it a bit hard to believe that the area supports $450k single family homes but has no rental market.

          sounds like the OP has really looked into this though.

          another option would be to contact a realtor in the area and ask if they have clients who have had a hard time selling and would rent to a married physician (i would lead with that).

          if you truly cannot find a rental then i guess i would say to buy the cheapest thing that will meet you needs. i think the one thing you really need to keep front of mind is that you have no idea what this job will be like and no idea what it will be like to live there. it sounds pretty good but maybe you're the first person the group is going to screw over now that they have all of the partners they want. i always tell residents that every job will disappoint them in 10-12 ways that are unfathomable when you first walk in the door, most of these will be minor annoyances but some might not be.

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          • #20
            We bought a cheaper house right out of residency. Then we had 3 more kids and moved 4 years later. Could have made it work but it was cheaper to move then renovate. After taxes and fees I figure we were out 10K. We did not do any significant work to the house other then usual upkeep.

            To rent something similar it would have cost a fortune. Renting a house just does not make sense in some areas.


            I did not know about WCI or any of this junk back then. But I figured that if we buy a cheaper house it could not hurt too bad if we had to move in short order. I also figured that a cheaper house was more marketable then a big fancy house.

            I figured correctly and do not regret my decisions. I plan to stay in my current home at least until the kids grow up pending any career disaster.

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            • #21
              Originally posted by Nysoz View Post
              Some find it hard to imagine LCOL areas and how there's nothing available for rent. When I moved to my LCOL area there was nothing around that I could find that would be suitable for rent so I bought a house. I just went into it knowing if I left my job early for whatever reason, I would be down money which I was ok with rather than living in a rundown area of town/house.

              With that said, my house in my LCOL area was 0.66x salary so the financial hit wouldn't be meaningful in the grand scheme of things.

              As for your situation, all real estate is regional so no one can tell you the right answer for your family/location but financially, renting is almost always the best option right out of residency or moving to an area. If you try your best and exhaust all options and there's no option to rent, then buy a house with the possibility of losing money due to property depreciation or buying/selling costs.
              Yes. We in retrospect lucked out finding a reasonably decent house to rent her in LCOL after residency. Generally though the SFH rentals here are not something to be excited about at all. Plenty of rentals but they tend to be very lower end. 0.6x salary certainly helps the potential financial hit as well, somewhat similar for us.

              OP, what is the market like in your new area? What is $450k getting you there and what is the likelihood of being able to sell if SHTF at your new job? Around here those "doctor" houses tend to sit on the market for a long time (at least prior to COVID, now things seem kind of crazy).

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              • #22
                Buy the house that you want. Even if it's $400k. In LCOL, the financial hit just isn't that big if you decide to leave in a year. And the reward for living in a nice house that you really like is worth that risk.

                Yes, many of you are overestimating the market for a decent single family home rental in a LCOL area. I am in a LCOL area and looked at possible rentals. But we bought because there were no great options to rent.

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                • #23
                  Some great thoughts and ideas and I'll definitely try some of them. Hadn't considered offering to rent a for-sale house, there are a few of those that could be good options if we can get the sellers to bite.

                  And for those of you who have been in similar situations, thank you for your input/experiences. Makes me feel better to know that sometimes it just can't/doesn't happen and can still work out. As for the group, I feel as confident as I can be that they 1. are not trying to screw anyone over and 2. are looking for someone long term. Both myself and the group were very deliberate in our choice and I have every hope that it will be a good fit, but I am fully aware that even the best planning and circumstances don't always equal success.

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                  • #24
                    Originally posted by childay View Post

                    Yes. We in retrospect lucked out finding a reasonably decent house to rent her in LCOL after residency. Generally though the SFH rentals here are not something to be excited about at all. Plenty of rentals but they tend to be very lower end. 0.6x salary certainly helps the potential financial hit as well, somewhat similar for us.

                    OP, what is the market like in your new area? What is $450k getting you there and what is the likelihood of being able to sell if SHTF at your new job? Around here those "doctor" houses tend to sit on the market for a long time (at least prior to COVID, now things seem kind of crazy).
                    450k there is newer (2005+) great finishes, fully finished basement, 3000-3500 sq ft, good school district, pretty area. I don't know anything about the market pre-COVID but currently this level of home is on the market much less time on average than other homes I mentioned. It's the nicer part of town, higher amount of professionals, seem to be enough higher income earners (or those with poorer financial choices) to sustain it because there's a lot of new growth. Even the nicer choices in worse school districts seem to sit for a longer time, so I feel like that's the major driving factor here. Again, I don't have enough long term data to know, but it seems like resale wouldn't be a huge issue if it was needed.

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