This case study has two purposes: 1) Trying to figure out when I can buy a house, per the subject title, and 2) trying to figure out an activity that will generate additional income. I'm 27 years old, living alone in the suburbs near a major metropolitan area in the northeast United States.
Income: Job 1: $475 take home weekly, $25k annually
Job 2: Variable but ~$125 take home weekly, $6500 annually
Total: $31,500/year, $2625/month
Expenses: I've taken Mustachianism to heart.
Rent: $725/mo, $7/mo home purchases = $732/mo
Car: $200/mo. This is 2014 numbers, will decrease significantly due to lowering insurance rates + walking instead of driving to work with new job. Estimated 2015 expenses: $120/mo
Food: $150-200/mo total, about half of that is groceries, rest is restaurants/alcohol
Bills: $61/mo gas+electric, $41/mo internet, $13/mo phone = $115/mo
Student loans: $185/mo
Miscellaneous expenses (entertainment, clothing, health purchases, travel, gifts, credit card annual fees, tax returns): $200/mo
Total: $18,600/year, $1550/mo
Net earnings: $12,900/year, $1075/mo
Assets:
Cash: $1800
Emergency fund: $10,500
(old) 401k: $16k
Roth IRA: $5900
(old) HSA: $3600
Taxable investments: $37,800
Car value: $4000
Total: $79,600
Liabilities: None. Student loans are not in my name, car is owned, and any credit card debt is paid off every month.
Short-term goal is to max out my Roth IRA contribution in 2015 (will take this out of my emergency fund in January, most likely). I'm also looking for a hobby/interest/side job that will start making some income for me. I don't make much at my second job (retail, in a stock room) and I think my time is better spent doing something else, but I'm not exactly sure what that would be. I'm only there right now because I know that time would be spent doing nothing. Long-term, I'd like to purchase a home in the next three years or so, before I turn 30. My job is half a mile from my home, and I enjoy it enough right now that I'd like to stay nearby. Houses in my area through a quick search on Zillow are roughly $150-200k, but most are 60-80 years old. I'd also consider getting a slightly bigger house than I need and renting out a room for some passive income. I've been researching home ownership and the process on and off, but I'm still mostly clueless on how much I would need for the initial sale beyond 20%+ down, and on a month-to-month basis. Property taxes are pretty high in my area too, about 3%.
Would appreciate any help that I can receive here. I can provide any further information requested, probably. Thanks in advance.