WCI,
I am 25 and I start medical school in July. I am fortunate enough to have enough money saved to put a 30-40% downpayment on a house (fixed phone screens in college) close to my medical school. The medical school is surrounded by cheap homes (compared to where I am now in socal), I can get a recently built home from 3-4 bedrooms, central air, the works, all packaged into a 2,000 sqft home (average) that looks nice.
I want to have 1-2 roommates and charge them rent while in my first two didactic years. After that. assuming I travel for audition rotations, I plan to partner with the medical school as a housing affiliate and rent out every bedroom I have to medical students.
Rent is approx. 900-1200 a month for a 3-4 bedroom. The house price I am looking at is about 140,000, which I would put 30% down (42,000). A 100,000 10-year mortgage at 4% after all fees said and done will be approx $1250/month.
Do you think this is a wise investment? Mississippi is not exactly a hot real estate market, I do not expect the value of the home to increase much, if at all. I am really banking on my mortgage being mostly paid for by someone else, in which case, when I sell at the end of the mortgage (or whenever), to me the money made would be [sale price - rental costs - initial dp - transaction fees]. I have never bought a home before, I am looking at averages for all the costs, but no one else is really guiding me through this.
I have never rented to anyone before, I know the costs associated, I am really just wondering whether or not this is something wise to pull the trigger on. Or should I just pay for tuition? The general idea is that once I am done with residency I would sell the home and all of that would go towards loans.
If you need more info let me know!
Thanks!
I am 25 and I start medical school in July. I am fortunate enough to have enough money saved to put a 30-40% downpayment on a house (fixed phone screens in college) close to my medical school. The medical school is surrounded by cheap homes (compared to where I am now in socal), I can get a recently built home from 3-4 bedrooms, central air, the works, all packaged into a 2,000 sqft home (average) that looks nice.
I want to have 1-2 roommates and charge them rent while in my first two didactic years. After that. assuming I travel for audition rotations, I plan to partner with the medical school as a housing affiliate and rent out every bedroom I have to medical students.
Rent is approx. 900-1200 a month for a 3-4 bedroom. The house price I am looking at is about 140,000, which I would put 30% down (42,000). A 100,000 10-year mortgage at 4% after all fees said and done will be approx $1250/month.
Do you think this is a wise investment? Mississippi is not exactly a hot real estate market, I do not expect the value of the home to increase much, if at all. I am really banking on my mortgage being mostly paid for by someone else, in which case, when I sell at the end of the mortgage (or whenever), to me the money made would be [sale price - rental costs - initial dp - transaction fees]. I have never bought a home before, I am looking at averages for all the costs, but no one else is really guiding me through this.
I have never rented to anyone before, I know the costs associated, I am really just wondering whether or not this is something wise to pull the trigger on. Or should I just pay for tuition? The general idea is that once I am done with residency I would sell the home and all of that would go towards loans.
If you need more info let me know!
Thanks!
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