When is the Right Time for a New Investor?

[Brady Schvaneveldt]

Hi everyone!

Just started listening to the podcast and thought I'd jump on here and ask a question about a decision I'm trying to make. 

I have 40k in savings, 10k in my Roth IRA, and I'm looking to invest in a new 3 bed and 2.5 bath townhome built by Oakwood in Lehi, UT (Holbrook Farms Development) that will cost around 305k. I would make a 5% DP at 15k, and I'd add another 10k to finish the basement which I'd rent out as a studio. My monthly payment will be 1500 and I'd be bringing in 1700 once I finished the basement. I'd have not monthly payment and would even be bringing some money in.

This feels like a no brainer considering most townhomes in Lehi are going for 330k+ right now as supply is very low and demand is very high. The reason I am locking in on 305k is because an investor I am friends with bought this property and graciously offered it to me (he is an ecclesiastical leader of mine). 

Here are my questions and concerns. I'm hoping that some of you who have had the same concerns could walk me through this. 

1. With COVID-19 and all the talk of forbearance, I am worried that I'll be missing out on a really big opportunity to get a better investment for a better price. Is this just FOMO, or a legit reason to hold? 

2. Oakwood is pretty new to this area so I don't quite know how good the area will be. There is another builder in the area with townhomes that are very nice, have 5 rooms, and would bring a better return on investment, but they are 330k and won't be finished until next year. Is it worth it to wait on one of those and keep saving? 

3. Being 29 and unmarried, I am thinking that grad school is in my near future. I don't know if I'll be in Lehi much longer. I think part of my hesitation is an uncertain future. The money I'd be paying for my down payment may cause me to be in some debt with school. Am I overthinking this? 

Thanks for your help and I apologize if this isn't very clear. Please feel free to ask any questions!! I'd love to be able to see this opportunity more clearly so I can make the best decision.