Profile picture for user7401866

Is now a good time to invest in a house in the Tracy/Modesto area.

I am 18 years old, and live at home with my parents. I have managed to save 20,000 over the last 1 1/2 years working at my part time job. I make anywhere from 1,200-1,500/month and my only expences are my 10$/month phone bill and 100$/month car insurance (I get grants for college). I will more than likely stay at home until I finish the schooling required to become a radiation therapist (I'm on track to getting my AA at 19 and then apply for a 18 month training program through kaiser) so I will not need this money until I finish the program and wish to move out. I want to invest this money rather than have it in my savings making a whopping .01% intrest. I am thinking about investing in home between $50,000-100,000 to buy to rent out (my parents will co sign because I have no credit history and they have excellent credit). I live in the Bay Area but am looking to buy in Modesto area (only place to find homes for that price). I figure if I get a $60000 loan with 20,000 down on an $80,000 house I can expect to have a 600 dollar mortgage based on 15years @4.9% intrest. If I could find a renter at 800/month (which is what zillow is saying rent would be for a house in my range) that would take care of mortgage and I could save the 200/month extra for months I don't have renters (even if I don't find a renter I would be able to take on the 600$/month mortgage because I have over 1,000/month I just throw in the bank anyway) I plan on being a landlord in the future and would like to get a head start. It sounds like I should just hire a financial adviser but any advice or anything form anyone here would be much appreciated. Even if it just answered my origional question (is it a good time to invest in Modesto or possibly Tracy area.)Thanks!
  • September 18 2013 - US
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Answers (1)

Profile picture for mamtazchowdhury
Smart... You are Approaching the Right direction. When you buy a House,you can Rented this House less or More. One day you can Pay Off your Loan, Great.
  • September 18 2013
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