USER QUESTION:I'm 26yrs old looking for some advice...... I bought my house in 2005 in it's not worth what I owe as of right now but plan to keep it until able to sell it and make a profit. My payments on my current home are low and has a low fixed rate. I want to buy a 2nd home I will be able to afford both payments on both houses in the event that I can't rent out the 2nd home. I have a little less than $10k in savings. Do you think it's a good time to buy a home with todays economic and job situation? EXPERT ANSWER:This is something you really have to work the numbers on. $10,000 is not much of a back up to have a rental property on your hands in today’s environment. Depending on the rental market where you’re looking you will need to carefully analyze the vacancy rates, and upkeep expenses; then be sure you’re well covered financially to handle these uncertainties. You should also consider the fact that we may not be at the bottom of the housing slump either.
Because of your age, I believe a rental property would be a great thing for you. Just be careful you have the financial backing to keep it in place and that the numbers work out well for you.
Max W. Smith CIMA®
Hillspring Financial, Inc.
www.hillspringfinancial.com 623.583.6141
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