College Graduate - To Rent or to Own

[Mitch Jorgensen]

Hi All -

I'll do my best to keep this as brief as possible, but I would like to give a bit of a brief background before getting to my big questions. 

I am currently a senior in college, expecting to graduate with a degree in finance in May. I have held an internship with a good company for almost a year, and they offered me a full-time position early last month - so my hunt to find a place to live (in the Milwaukee, WI area) begins. I know 'most' graduating college students just limit thinking to renting/leasing a place. But, maybe due to my degree, I HATE the idea of putting money into nothing. Especially in this area, where a single apartment might cost around $900 (might as well get a mortgage and a roommate). I have recently been in contact with my banker trying to get pre-approved for a loan and things are looking good. I guess working to pay off loans and building a good credit is paying off (expecting to only put down between $10-15k and deal with PMI, initially).

I have been looking at purchasing duplex homes in my area, renting out one side, and living with a roommate in the other (yes my roommate will also pay me rent). I obviously don't want to put myself at much risk, so I am looking for places with a good price range (something that I could handle by myself without tenants). But as I mentioned, the end-goal is to live for fee while establishing a good equity right away! 

Since you are all much more educated in the topic than me, I would love to hear any advice/input you guys might have on my current situation. Am I on the right track? Should I not be making such a big investment early on? What makes a good deal? Should I expect a mortgage payoff and extra cash flow each month? What should I be taking into consideration when looking for places? What would you be doing in my situation?

Thanks everyone!

Mitch

[Caleb Heimsoth]

First off congrats on graduating! Hopefully college was a blast for you like it was for me.

I used to live near Milwaukee last year and still have friends who went to school and now live around there. I’m originally from WI myself.

I graduated college about 18 months ago and own 3 rentals while still renting myself. So I guess I’m encouraging a sort of hybrid model. What you described in your post is called househacking on this site. It’d s great way to go, just be sure you plan on keeping the property for a while, even if you move. Milwaukee can be a great market to own rentals as I’m sure you already know. Just beware of some of the high tax areas.

Feel free to message me if you want. Love seeing other young guys get into real estate. Once you get that first rent check it’ll change your life forever lol.