Hi Tyler,
I built my portfolio here in the Portland metro area by starting with a condo. My recommendation is to run some numbers with a lender and on some actual properties to see if now is the right time for you to start your investing journey. A local lender will give you real numbers for estimating your payments, and will help you see if you qualify for some down payment assistance programs which may help keep some money in your savings. We have some great options like the Oregon Bond (either a cheaper rate or up to 3% for closing costs), and the new Flex 5% down payment program. I can give you referrals if you would like). Then once you look at properties you can decide if you want to buy.
***Please note, not all condos are on the FHA approved list so you may want to ask you lender about the down payment options you have with a conventional loan (I have seen 3% and 5%).***
Here is an example of a 2 bed 2 bath condo in Gresham near Mt Hood Community College. (Great location for getting potential roommates). The going rent for a bedroom with a private bathroom there ranges from $600 to $800.
https://www.redfin.com/OR/Gres... 4678 W Powell Blvd
$250,000 purchase price 6.5% interest rate (assuming FHA loan)
3.5% down payment = $8,750
2% estimated closing costs = $5,000
appraisal = $900
inspections =$750
OUT OF POCKET = $15,400
Estimate monthly payments: $2,231 (includes: Principal and interest $1,525, Property taxes $186, HOA dues $362, Homeowners' insurance, $48Mortgage insurance).
After renting out a room for $700 your portion would be $1,531.
Or if you were willing to sleep in your living room and rent out both bedrooms, your portion would be $831.
Of if you purchase a home and don't have monthly HOA dues to worry about, maybe you can rent more rooms?
https://www.redfin.com/OR/Gres... 1857 SW 5th St (3 beds, 2 baths, plus a bonus room and 2 car garage).
$429,900 purchase price 6.5% interest rate (assuming FHA loan)
3.5% down payment = $15,047
2% estimated closing costs = $8,598
appraisal = $1,000
inspections =$900
OUT OF POCKET = $25,545
Estimate monthly payments: $3,237 (includes: Principal and interest $2,622, Property taxes, $342 Homeowners' insurance, $82 Mortgage insurance)
After renting out a two for $700 each your portion would be $1,837.
If you were willing to sleep in your the bonus room rent out all three bedrooms, your portion would be $1,137.
If you crash in your living room, you can further reduce that to $437.
Do this help you with your decision?
I am happy to chat more, just send me a message. :)
