First House

[Account Closed]

Hello Everyone,

Quick background:

-19 years old

-living at home 

-Fraser, Mi (30 min outside of Detroit)

-full time employee 

-$30k a year before taxes

-full time student

So the house next to mine recently went on the market. Nicely finished 3 bedroom single dwelling. Current owner has been renting it out. The asking price is $85k. My mom thinks this would be a great move for me knowing I want to get into real estate eventually. She says I could put 3.5% down with an FHA loan and rent out 2 rooms. She thinks it would only be around $400 a month. Charge each roommate $200 and I would be just helping with utilities. Only problem I see is I have $2000 set aside in an account I add to weekly for a house. She said her and my dad would cover the rest. It would be awesome to be able to do this but I don't know if I should. My eventual plan would be to move out and keep it as a rental property. Thanks for any tips and comments.

-Jacob

[Richard Bailey]

I would go for it. The Detroit real estate market is going to come back strong. Also you may never see interest rates this low again in your lifetime. Worst case, the house will always be worth $85,000.

#trustyourparents