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Updated almost 8 years ago,

Account Closed
  • Tucson, AZ
1
Votes |
5
Posts

Fresh out of college, rent for a year or buy cheap?

Account Closed
  • Tucson, AZ
Posted

I'm just finishing my master's in electrical engineering. I'll start my first job making $80,000 a year + 18% retirement in June. After putting in the minimum to get all the matching from my employer (4%) I'd like to put the rest of my investing money into real estate. My wife and I were planning on renting for a year while we save a downpayment for a Duplex house hack then move out of that a few years later. The places we've looked at renting are about $700-$850 a month.  

Would it be wise, instead of renting for a year while we save up a downpayment to buy a cheap house at about $70,000-90,000 now, pay a mortgage of about $575 and save up a 20% downpayment on a new house or duplex over the next year or so? When I have a downpayment of 20% saved up after 12-18 months would I be able to qualify for a new mortgage on a modest home (about $175,000) in addition to the original mortgage without any landlord experience? 

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