Is this a good time to buy my first home?

Question

Hi, im a 29M in Macon GA, single father.

I own a piece of rural property (3.5acres) that I'm considering putting a mobile home on. I paid cash for at as a zero down seller financed deal when I first moved here and before I ever heard of rich dad or bigger pockets. Looks like it'll cost me about 150-180k to do a 1500-2000sqft doublewide on my land at zero down using Land in Lieu.

The school district is subpar, and the land is 45mins from my job (so is the school).

I think I can buy a house in a better school district closer to my job for about the same amount of money.

This is my first ever big purchase and I'm nervous, but my current living situation needs to change.

There are so many things for me to consider and i would love advice from someone who isn't trying to sell me something.

I have about 15k saved up that I can use for the purchase, but I don't want to spend too much and have to to work long hours to afford a house, thus sacrificing time with my kids.

I can sell the land for 20-40k but idk what benefit that would earn me other than money in anaccount.

Can anyone offer some advice or guidance?

Tldr: first time home buyer. Single father. 15k savings.

Build on my land? buy something else? Sell my land?

Cody Simmons · Answer

@Rachel H.

Thank you so much!!

Abel Curiel · Answer

Hey @Cody Simmons!

Tough to offer advice here without knowing much about Macon, GA or surrounding areas. Couple of things to consider here:

- Is your target area in a buyer's market or seller's market? If its a great school district, demand is typically high. Doesn't mean you can't shouldn't acquire something there... just means if you're competing at the top of the market, you should intend on holding onto it long term. If you're looking in a buyer's market, try making some offers on properties that:-- have had multiple price reductions-- have reduced their price multiple times-- 'expired' or went unsold for X months on market-- could be a good BRRRR deal. Use the BP calculator for this! These properties are good targets b/c they wouldn't appeal to traditional residential buyers. i.e. folks looking for something turnkey- Cost of living - Does this significantly increase your current cost of living and if so, is that putting you in a risky situation? - Investment strategy - BRRRR? Househack (if applicable)? Possibly rent another place to keep cost of living down and invest in a lower-priced market. ** I recommend this a LOT here in NY. If someone is priced out of the local market and the BRRRR, Househack, etc. strategies don't make sense, I encourage them to check out Upstate NY which is in driving distance has 1/4 the entry point price for investment properties.If you cannot find what you're looking for on the market, the best way to find something with multiple financing options and perhaps the best way to find a deal in general is to go direct to seller. You've done it before and that was before rich dad, poor dad! That said, one piece of advice would be to speak with local investors and local investor-friendly Realtors. "Please don't try selling me anything, I just need advice here" is a great way to set expectations! Its a #s game so try speaking to a few folks locally and you'll be able to smell 'commission breath' if the professionals are just looking for a deal/sale.All the best!Abel

Shannon Smith · Answer

Hey Cody, I lived in Macon for 15 years… we have since moved our primary residence to Forsyth for the Monroe Co schools. Are your children elementary age? If so and your plan is to be in Macon, I’d strongly consider selling the land and using your profits to buy a townhouse on a street like Braxton Dr bc that is zoned Springdale which is the best elementary school in Macon. There are other cute little streets with 2 bedroom townhouses such as Wesleyan Way etc that, if I’m not mistaken, are also zoned for Springdale. Your kids would have to share a room, but if you have 2 and they’re still relatively young that is doable.  My advice if you’re planning to stay in Macon would be to apply for Ace’s lottery every year. If just one of your kids gets in then the sibling automatically does, too.  Great charter school and you wouldn’t have to worry about Macon’s middle/High schools. You could take advantage of being a first time buyer and not have to put 20% down, and then when you move on you could hold the townhouse as an investment.  As I was reading your situation, I tried to think what I would do if I were in your shoes. Hope my ideas help you.

Rachel H. · Answer

@Cody Simmons If you've never done a large real estate transaction before, the best place to start would be your own personal residence. With that in mind, it's best to choose to live where you feel the most comfortable (versus the least amount of money).

What you are paying for is the neighborhood. Before making any type of buying decision, it's best to try things out first. Renting for a while is a good option if you're still on the fence on where you want to live in the future.

About your rural property, if money is tight right now I'd hold off on your plans before you're in a better position financially. Since the property is farther away from the city (since it's rural), usually any type of real estate will take longer to fill. Also, keep in mind you'll be around a different type of clientele being in a rural area and all.

As a general rule of thumb, I always do things based on my personality not the other way around. So, it's going to be your decision whether or not you feel comfortable in a rural setting versus one that is not.

Hope that helps!

Cody Simmons · Answer

@Abel Curiel

Thank you so much!!

Is this a good time to buy my first home?

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