Home buying/rental question

[reza1379]

I'm a 1st year attending (started last September). I'm in a surgical subspecialty and make ~400k/yr.

I rent--and I know I pay way too much, ~3k/month. I have ~140k loans that I already refinanced with laurel roads at 3.35%. I'm looking to buy a house as my lease is up in June. Houses in the city aren't cheap (A decent home in the city will cost at least 400k. I anticipate spending somewhere between 300-600k).

I plan on getting a physician mortgage and plan to put down 5-10% hopefully.
Ultimately, I would like to eventually rent out the first home I buy--I'm not sure if that will be in 1, 5, 10, or 20 years. So really I'm looking to kill two birds with one stone--I'm looking to live in a modest 2 br home in the city, one that will rent easily when I decide to move..I feel like this would give me flexibility in case I want to graduate to a bigger home or even if I had to move on to a different position.
1. Do you think this is a mistake if I don't stay in that home for >4-5 years (assuming rent is coming in)
2. If I do get a second home, do you think I will be able to get a second physician mortgage loan?
3. Will my debt to income ratio be a significant factor in buying a second home assuming I'm pulling in a matching rent?

Thanks for any advice!

[Zaphod]

reza1379 wrote:

I’m a 1st year attending (started last September). I’m in a surgical subspecialty and make ~400k/yr.

I rent–and I know I pay way too much, ~3k/month. I have ~140k loans that I already refinanced with laurel roads at 3.35%. I’m looking to buy a house as my lease is up in June. Houses in the city aren’t cheap (A decent home in the city will cost at least 400k. I anticipate spending somewhere between 300-600k).

I plan on getting a physician mortgage and plan to put down 5-10% hopefully.
Ultimately, I would like to eventually rent out the first home I buy–I’m not sure if that will be in 1, 5, 10, or 20 years. So really I’m looking to kill two birds with one stone–I’m looking to live in a modest 2 br home in the city, one that will rent easily when I decide to move..I feel like this would give me flexibility in case I want to graduate to a bigger home or even if I had to move on to a different position.
1. Do you think this is a mistake if I don’t stay in that home for >4-5 years (assuming rent is coming in)
2. If I do get a second home, do you think I will be able to get a second physician mortgage loan?
3. Will my debt to income ratio be a significant factor in buying a second home assuming I’m pulling in a matching rent?

Thanks for any advice!

Click to expand...

This is exactly what I did. Bought a modest home in a good rental area, it had a converted office to 4th bedroom, so a little bigger than probably best sized rental market size, but no big deal. You're thinking is in a great line I think. You want the place to appeal to a large swath of potential renters while keeping it nice. We picked a place that needed a bit of external tlc, but I have experience in this area so I wouldnt necessarily recommend it for others.

We only stayed one year due to great interest rates and finding a house we loved. We've had a renter for a year. Usual stuff, some hassles but really not bad at all and theyre paying down an asset for us.

You wont have any problem getting a second place I'd imagine. Just make sure your PITI on both places is something that you could easily afford no matter what and the bank wont care. Your debt to income is far better than mine was, though home prices are higher (we did 230/400) so that could be an issue, nothing you cant find out beforehand though. Just make sure if all else fails you can afford it (dont have to be happy about it) to pay for both no problem.