First Purchase Doubts

[Brooke Singler]

Hello,

I submitted an offer on a 3b/2.5ba, 1990sq ft duplex style townhome (single unit, not both) in western Washington and my offer was accepted at $427k. With a $60/mo HOA(external maintenance not included with the exception of fencing) and 6.5% interest rate, my monthly mortgage (with taxes, insurance, HOA, etc) will be around 2600/mo. This will be my primary residence and my partner will be paying some portion towards the monthly expenses. The neighborhood was built in 2009 (15 yrs old).

I'm having a hard time deciding if I should move forward with the deal or keep renting (currently paying $2200/mo in an apartment, we would have to pay $4k to terminate lease early). The plan would be to live in that property for 3-5 yrs, pay down the mortgage, then turn it into a rental. There are a lot of renters in the area due to the military presence. However, it is hard to gauge the rental potential so many years into the future with new construction SFH and apartments being built in the next few years.

I'm worried about the HOA, the rental potential, whether I should keep saving and buy a SFH, or if I should just take the plunge and start building equity. I've been thinking about real estate investing for several years now and didn't expect to be so confused when trying to make my first purchase.

Any help is appreciated.