Quote from @Fernando Juarez:
Hi everyone,
My fiancé and I moved from Texas to northern Illinois last Summer (2022). We moved due to work and, fortunately, we like it here. We are 28 and we have recently finished school and have stable income. We have wanted to get started in real estate for the last 3 years but we knew there was a chance we could move. Now that things are settled, we can see ourselves living in Illinois for the foreseeable future. We want to purchase a property.
We are determined to purchase a small multi-family but there isn't a lot of inventory out here. Most of the inventory that is available is priced too high with relatively low rents. The few properties that are profitable get sold within 72-hours of posting (by the time a getting a showing appt. it gets under contract). We are starting to think that we might have to renew our lease (July 2023) since we haven't found a profitable multi-family yet.
Do you think that we should by a single family so we can stop paying rent? Or renew our lease on a month to month basis and hope we find a profitable multi-family soon? Do you have any other advice or suggestions?
If we do buy a single family, we will continue to look for multi-family properties to invest in the future.
Thank you!
I would say usually to buy a home is better than to rent. You pay down your mortgage, you can refinance it later, your monthly payment usually stays the same(depending on your loan type). However it could also go the other way. What it usually comes down to are numbers: What will be your monthly payment, can you afford it and will the price you pay every month be stable or increase year upon year.
While I know home prices are competitive, I would say you should consider maybe house hacking a duplex or triplex if you find one.Of course you need to analyze each deal to see if it works for you financially and that you don't lose money. It might take time, especially with inventory issues the way you talk about it in your location but you'll get your own home, get part/ all the monthly payment covered by the tenants, you get your feet wet investing, etc.
This is my opinion. What do you think?
