Physician Loan for House in residency

[Eppur Si Muove]

---

Members don't see this ad.

looking for some input on my situation, where it seems buying may be the better bet. Where I hope to match, the housing is about 200-240k purchase price for a 3bed 2bath, about 1800ish sq ft renovated colonials, most I'm looking at with newer roofs, windows, furnaces, and appliances, etc. Mortgage rates 800-1100$, average rental for this same house would be 1800-2k. I do, however, have 2 friends (2 former college roommates, one of which is a brother, now business professionals) that are interested in living with me for at least 2 years if I match there, mainly because of all of us in stable jobs in the same area. If I buy, I could recoup at least 2/3 the mortgage in rent from them. I plan on living in this area for at least 6-7 years (4 residency, possible 1 fellowship, 2+ as attending to pay debts and save money). Renting alone without a roommate would be at least 1200+ for a decent space in a neighborhood I won't get shot at. It seems buying seems somewhat smarter in this scenario?

 

[mja75]

I purchased a 1600 sqft home in FL with a Doc loan for residency. Mortgage was 1k/month with a 5/1 arm. Could not have made a better decision. Made great friends in my neighborhood, hosted awesome parties and made off with $40k-ish when I sold 4 years later to boot; living like a king in fellowship now with the proceeds. My recommendation is do it. Having your own home has many benefits that imo opinion outweigh the attractiveness of renting. Just buy wisely and don’t chase the seller in a bidding war.

 

[pgg]

I purchased a 1600 sqft home in FL with a Doc loan for residency. Mortgage was 1k/month with a 5/1 arm. Could not have made a better decision. Made great friends in my neighborhood, hosted awesome parties and made off with $40k-ish when I sold 4 years later to boot; living like a king in fellowship now with the proceeds. My recommendation is do it. Having your own home has many benefits that imo opinion outweigh the attractiveness of renting. Just buy wisely and don’t chase the seller in a bidding war.

Very nice 🙂


I do feel compelled though to point out that pocketing $40K from buying and selling a house 4 years later probably means that you bought around $190K (resulting in your $1K monthly payment with a 5/1 @ 3%) and sold around $230K (less $10K in transaction costs, and owing ~$180K at the time of sale because of your 4 years of payments knocked off $10K of principal).

That's 21% appreciation in four years, or about 4.9% compounded per year. That is not normal and others should not make plans expecting results like that. Especially when there is a very real risk of zero appreciation in 4 years, or even a loss ... leaving the person with the burden of choosing between incurring a net expense to sell vs becoming obligatory landlords. Both of which suck and do not lead to a fellowship year of royal living. 🙂

 

[Mad Jack]

So I bought. Be ready to need a few thousand down regardless of what they tell you because of closing costs and other factors. Overall I'm happy having bought because I actually MUCH prefer my house to an apartment or condo rental, and my costs are FAR cheaper than renting a similar home in my area. But it doesn't make sense if you won't stay in the area tbph. I'm thinking I'm going to keep this home as a base for doing locums out of tho