Also posted on r/personalfinance
Hello Y'all. I (25M) am planning on buying my current family home at 200k and am applying for a mortgage. My parents are buying their retirement home. I am ready with my 20% down, with my parents giving me 15% of a gift of equity. I have some more in savings (emergency fund) that I can use for this if needed.
Can the mortgage rates be close to prime if I buy this straight as my rental property? What would be the best way to go about buying this property? Should I instead buy this property as my current primary residence and then after a year (or however long the contract says) before I turn it into a rental property? I was thinking of applying for a HELOC mortgage and playing it down faster as I am planning on settling down in this house five to ten years down the line. I am also gone for 3/4 of next year for an army mission and I plan to travel more so this will probably be given to a management company or I will have to manage somehow while I do my traveling (months at a time) for work/ army.
About me:
- Income: $45k/year - Full-time job, $5K/year - Part-time Army drill
- Future income: $71.2k/next year (**45k next year - Army mission, 15k from my full-time job while on army mission, and another 11.2k when I come back) **[Low bowling by maybe $5k]
- Expenses: $6000/year; living with my parents (Highest it can be). Broken down: Gas for car: $2880/year, phone bill: $300/year, car insurance and health insurance: $1320/year, Fun money: $1500/year. I bought a used car and has been paid off. Living and food expenses: $0/year.
- Investments: $1100 (tsp and 401k: did the match for both), $400 (IRA in 2021)
- Debt: 30k - Student loans @ 4.8% ($300/ month starting May), $25k - Personal Loan @ 2.99% ($500/ month starting this Feb)
- Savings: 4k - Emergency Fund
Edit: I will be an O2 on February 2023. One month into my mission
Edit 2: Updated expenses to make it more detailed and included the investments section. Also, I graduated from college six months ago.
Hello Y'all. I (25M) am planning on buying my current family home at 200k and am applying for a mortgage. My parents are buying their retirement home. I am ready with my 20% down, with my parents giving me 15% of a gift of equity. I have some more in savings (emergency fund) that I can use for this if needed.
Can the mortgage rates be close to prime if I buy this straight as my rental property? What would be the best way to go about buying this property? Should I instead buy this property as my current primary residence and then after a year (or however long the contract says) before I turn it into a rental property? I was thinking of applying for a HELOC mortgage and playing it down faster as I am planning on settling down in this house five to ten years down the line. I am also gone for 3/4 of next year for an army mission and I plan to travel more so this will probably be given to a management company or I will have to manage somehow while I do my traveling (months at a time) for work/ army.
About me:
- Income: $45k/year - Full-time job, $5K/year - Part-time Army drill
- Future income: $71.2k/next year (**45k next year - Army mission, 15k from my full-time job while on army mission, and another 11.2k when I come back) **[Low bowling by maybe $5k]
- Expenses: $6000/year; living with my parents (Highest it can be). Broken down: Gas for car: $2880/year, phone bill: $300/year, car insurance and health insurance: $1320/year, Fun money: $1500/year. I bought a used car and has been paid off. Living and food expenses: $0/year.
- Investments: $1100 (tsp and 401k: did the match for both), $400 (IRA in 2021)
- Debt: 30k - Student loans @ 4.8% ($300/ month starting May), $25k - Personal Loan @ 2.99% ($500/ month starting this Feb)
- Savings: 4k - Emergency Fund
Edit: I will be an O2 on February 2023. One month into my mission
Edit 2: Updated expenses to make it more detailed and included the investments section. Also, I graduated from college six months ago.