Author Topic: Buying a house hack before the bubble bursts  (Read 1950 times)

thorbjorn88

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Buying a house hack before the bubble bursts
« on: June 07, 2017, 05:01:37 PM »
My wife and I are currently shopping for a live-in duplex or triplex for our first home. The plan is to live in it for a few years while saving up another down payment to buy a single family home while keeping the duplex to rent. I've been hearing some people talk about how there is a recession or housing crash on the horizon.

Here's my question: If we find a place where the numbers make sense for it to be a profitable rental after we move out should we be very worried about an impending crash? Would rents be severely affected by a housing crash or recession? And ultimately should we continue renting and wait for the crash before buying our first property?

 

Nate R

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Re: Buying a house hack before the bubble bursts
« Reply #1 on: June 07, 2017, 05:11:04 PM »
My wife and I are currently shopping for a live-in duplex or triplex for our first home. The plan is to live in it for a few years while saving up another down payment to buy a single family home while keeping the duplex to rent. I've been hearing some people talk about how there is a recession or housing crash on the horizon.

Here's my question: If we find a place where the numbers make sense for it to be a profitable rental after we move out should we be very worried about an impending crash? Would rents be severely affected by a housing crash or recession? And ultimately should we continue renting and wait for the crash before buying our first property?

I would say no, don't worry too much about it. Rents tend to be a bit sticky and I don't think they would drop severely. In the last housing crash, rents went UP during/soon thereafter as there were more people looking to rent!

Also, in my opinion, I don't think we'll see a crash soon, but likely more a tapering in the market to something more balanced/normal. There probably will be a small recession in the next few years, but not major. Again, my opinion.

As the owner/occupant of a duplex, I think your plan is a good one. ;-)

Cwadda

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Re: Buying a house hack before the bubble bursts
« Reply #2 on: June 12, 2017, 08:52:42 AM »
Unless you have a crystal ball, I recommend just taking action and buying a house that gives you cash flow. Create multiple exit strategies for yourself, that way if something does happen you'll have many more options.