All Forum Posts by: James Johnson

Quote from @Malcomb Stapel:

@James Johnson  do you have to continue living in that city? You could move somewhere more affordable/ enjoyable and start there. 

As far as living in the hood, I wouldn't. But if you could find an area that you knew was up and coming (see re-gentrification) that might be worth looking into. 

Thank you for the response Malcomb.

My office is based in the downtown area of my city, so I would have to find a new job if I were to move. I make decent money, but the insane increase in housing costs have made it almost impossible to afford a home. 

There a fair amount of duplexes for sale in up and coming areas of the city. Perhaps I could buy one, and hold onto it? The downside is, almost all would be CF negative so I would be betting on the equity increase.

Hi,

I currently rent and am contemplating whether to buy a house for myself or an investment property (duplex/triplex). The main hurdle I’m facing is that I live in a very expensive city and renting is actually cheaper than owning. My current monthly rent on a 1br apartment is $1.4k, which fits very comfortably in my budget.

Unless I move to the hood or far outside town, houses cost at least $650k and I cannot afford the monthly payment on that. 

On the flipside, there are a fair amount of duplexes/triplexes for sale in sketchy areas that I could purchase and nearly break-even from a cashflow perspective. Given how much growth my city is experiencing, I feel confident the property values will steadily increase in a short term. 

My Stats: 
Cash Available for down payment: $75k

Monthly Salary (post-tax/401k): $6k


What do you think, should I buy an investment property or a primary residence? 

Thank You!