How much house can I afford? Background: I am 25 years old,

Talk to lenders and realtors. There are a lot of fees on top of the normal 20% down payment, but there is a lot you can do. If you're a first time buyer you may be able to get a conventional mortgage for 3% down. You could get an FHA for 3.5% down. You could put in your offer 'seller to pay buyers closing costs up to 6%', and optionally offer 6% over list price. You could have a cosigner to increase your price range and rent rooms out. You could buy a duplex or triplex. You could buy a shithole, fix it up with 0% credit cards and cash out refinance.

Usually start by picking a property and getting pre-approval through a lender. There isn't one specific way to do these deals, it takes networking, research and some forward thinking. Look for a mentor or investment groups in your area. Get someone experienced to walk you through.

I'm 28 and buying a cheap house in philadlephia on a 203k loan now. I have no debt, about 25k liquid, and 70k salary. It worked out to be much cheaper than renting even if I screw the deal up and can't find renters.

>>1080280

Thank you for the input. It seems to me that over the course of just a few years, it is cheaper than renting.

Home prices and COL are very low here in general, but I will admit the idea of such a long term loan at this point in my life, while not scary, makes me cautious.

I am personally thankful that my parents insisted that I live at home out of college. I feel like having this much money on hand is a great asset, and I am in a pretty good financial position. But the assumption of a significant amount of debt when I have never had any before (my college was paid for through scholarships, so I never had student loans) is something that gives me pause, and I worry that the costs of home ownership may end up being much more than I am assuming.

>>1080501
A 30 year contract for hundreds of thousands of dollars is a little troubling at first. Not too many people enter with the thought of being profitable. Are you adding value to the house? Can you rent it out for more than the payments? Is it appreciating?

You will most likely not pay off the mortgage and ever own it outright, but rather make money by saving on buying vs renting, renting to tenants, or selling for a higher price.

>>1080545

Profitability is not the first consideration, as I would like to live in it for at least a while. I am mostly concerned about the finances, hidden costs, etc. Things like mowing the lawn an d landscaping aren't a concern, I have plenty of migrant workers who work for my family farm that can do that either as an additional duty or for a very reasonable price (I know that sounds sort of flippant, but their duties already include taking care of other rental properties my family owns). Depending on where my job takes me, however, I can see it being a good rental, and if I end up settling down elsewhere, I can always offload it down the road.

I personally have no reason to add on to it or improve it at present, as it is well maintained and has the features I find desirable. I might finish the basement one day I guess, but I have plenty of legitimate uses for an unfinished basement, so it's not a priority.

The area is appreciating, but not significantly. This is a nicer part of a rural area of the county.