First Property Purchase (Long Term Advice)

[Oscar Zhang]

Hello BP Community! Newbie here looking for some advice and guidance for a first-time homeowner!

The WHY: I'm hoping for this to be the foundational starting point for myself to escape the rat race along this journey and ultimately gaining some experience to continue down this journey.

As the title states, I'm looking to invest in my first single-family property. I'm looking at single-family homes since this is what I can afford in my current market based on my pre-qualified amount (~$450k, but my personal preference is at a $325k max to have some additional cash on hand). I've been browsing the forums and reading articles to see where and how I can get started. I've been doing a few analyses but not completely sure as to where I should start and which tools I should pay more attention to and hoping that the BP community can provide a first-time homeowner some guidance. 

Hoping to pick up a property in the PA suburbs (Chester County, Delaware County, Montgomery County area). I plan on picking up a property I know that will need some sweat equity. I plan on making it my permanent residence for 2 years max (hopefully) and then turning around to leasing/renting it out. In the area where I am specifically looking (Chester County), I've been looking at the historical data for renter-occupied vs owner-occupied and the numbers have slowly risen - to me this is a good sign of an area I believe I should be looking for as I start this journey. The area has also been increasingly becoming populated with younger families/couples and more local restaurants and businesses are opening. Additionally, the area is easily accessible with public transportation and/or vehicle since there is a major interstate highway. Currently, it will be me on this deed and my gf will move in with me and help pay the mortgage. And hopefully, as we grow, we will purchase another property together in the coming years.

How should I know what my MPP should be for a home? How would I guestimate what the estimated repairs needed will be in the 2-year time span? As an individual looking to purchase what are the main factors/numbers, I should be looking for/at? For someone like myself, am I looking too deep into the numbers and getting analysis paralysis? 

I know there is not a right answer or a magic solution that will give me exactly what I need, but I am trying to learn more about this field and ultimately help my decision-making. Any articles or thoughts will be greatly appreciated! Looking forward to the responses!

Thanks in advance BP community! 

[Jonathan Dempsey]

@Oscar Zhang

Hey Oscar, congrats on getting into your real estate journey!

As someone who grew up in the suburbs of Philly and began my real estate journey in Philly, I will say theres some great benefits financially to being in the city. Depending on your balance of wanting a future investment versus wanting a place to call home for decades to come, that will change your search. Somewhere you will live for 1-2 years is easier to think financially than somewhere for 5+ years.

With that being said, you will likely have to do some soul searching to find out which neighborhood you most resonate with.

DM me if you want to chat more about the options and how to get started!

I’ve gone from your shoes (figuring out what to buy for my first property in or around Philly), to now 16 properties since I began! The journey only becomes more exciting as you go!!

Live Free,

JD