Buy Now vs. Wait and the Best First Rental for Beginners

3 months agoScore: 78
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Summary

This BiggerPockets article discusses the financial considerations for new real estate investors, specifically house hackers. It emphasizes the importance of analyzing cash flow and goals when deciding whether to buy a property now, even with added expenses like PMI, or waiting to save more. The article also recommends cosmetic rehabs over significant rehabs for first-time investors to mitigate risk.

Key Insights

  • Buying a property now can lead to appreciation and beat the competition, while waiting may lead to a larger down payment and better cashflow.
  • For new investors, cosmetic rehabs are recommended over significant rehabs due to the lower risk and easier management.

Action Items

  • Analyze your potential cashflow, savings, and long-term goals (1, 3, and 5-year plans) to determine if buying now (with potential added costs like PMI) or waiting is the better strategy for your situation.
    Effort: low
    Impact: medium
  • Research the market and compare buying single-family homes versus multi-family units to find the best deals.
    Effort: medium
    Impact: medium

Watch Out For

  • Don't get trapped on the costs of a deal like PMI; focus on the overall financial benefits.

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