Real Estate

Step 1

After murmurs from my parents about charging me rent in order to sleep in my room I went about perusing the classifieds for cheap apartments. After not finding anything within a price range I found acceptable I reluctantly resigned myself to having to throw some money at my mother and father. But then it slowly dawned on me; I may just be at a point where I can start looking at buying some real estate. My cash savings are getting to the point of being a modest down payment on a house. I have had some bad debt in the past but that was cleared up over a year ago and I have been rebuilding my credit since.

Really, it would be perfect timing given current market conditions. Prices are near rock bottom in the real estate market. I have heard some predictions of continued 5-10% declines in average home prices over the next one or two years before the correction is over. Given that it would make sense to wait another year but two things are stopping me from that and urging me to just go ahead with it right now. The first is my need for a place to live. I’m over-staying my welcome at home and any money I’d throw away renting somewhere may as well be spent paying down a mortgage somewhere else. Number two is that the market I would be buying in (read: absolute bottom of the real estate barrel) doesn’t have much lower to go. Given that, a 10% reduction in price really wouldn’t be that significant on a building that cost less than $100k anyway.

So my mind is all a-twitter. I’m shopping around on the internet looking at 2 and 3 unit apartment buildings that ‘need a little work’. – Something I’m up for. If all goes well and I’m able to buy within the next 3-4 months then I ought to be in position to purchase a second property about one year from then. And I think a third would be in order less than a year after that. Which would amass my empire to 3 2-3 unit apartment buildings. At which point I may be in position to consider leaving my job in order to focus on law school full time. Now THAT would be a delight.

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