Rental Property Investor · Dallas, TX · Member since 2020 · 4 posts · 1 vote
As US citizen, first home buyer, 788 credit and 90k liquid asset owner, is now a right time to look for a house?
Here is my situation, I have 20k in quity, 50k in bonds and 50k in cash. 30K of this would be my emergency fund so 90k can be down payment. Dallas market is shifting towards buyers market and i might be having FOMO but I have been wanting to buy a primary residence for i am newly wed. I feel i should leverage this shift to negotiate pricing and maximizing cap rate anyway possible. However, remaining as long term stock investor may be a better option.
Dallas, TX · Member since 2019 · 12 posts · 3 votes
6y
Hi Bo,
Since you're weighing the option of primary residence vs stocks, I'd consider how much you're paying for rent vs cost of home ownership with FHA loan. Since rates are already low, i would not put 20% down. The DFW market is still strong as @Lucia Rushton mentioned so I would not expect a significant price drop right now
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
6y
@Bo Sim. Dallas will continue to be a strong market because of our diversification in the employment sector.
As you say, you are looking for a primary residence, now is a great time to buy - especially if you are not picky.
There are plenty of properties that have higher DOM because they were overpriced to begin with. Sellers are concerned and if smart will accept realistic offers. Mortgage rates are good.
The market is still as active as pre-covid19. If you have any questions please reach out anytime.
Dallas, TX · Member since 2019 · 12 posts · 3 votes
6y
Hi Bo,
Since you're weighing the option of primary residence vs stocks, I'd consider how much you're paying for rent vs cost of home ownership with FHA loan. Since rates are already low, i would not put 20% down. The DFW market is still strong as @Lucia Rushton mentioned so I would not expect a significant price drop right now
Rental Property Investor · Cleveland, OH · Member since 2019 · 150 posts · 47 votes
6y
Look like your in GREAT shape to purchase your first property. Look into doing a FHA loan putting down 3.5% on house. Preferably a MFH so you can live in 1 unit then rent the other while living rent free or paying close to nothing. If you go SFH route. I'll get a nice Single Family house with 3-4+ bedrooms, and rent out the other rooms while you live in (1) for free. That way you can use some of your other capital to buy more property, while still living rent free in the first one and gaining g some cash flow from it.