I’ve been searching on some online sites, but I’m not too sure if going through a realtor is the best bet for buying a home. My plan is to buy my first home in CT, near New Haven and rent it out. What would you recommend I do to find homes, and to find a good price for rent?
Why not buy a duplex? Live in one side and rent out the other. That way you are not paying rent to your landlord, you would be your own landlord. Why would you cut yourself off from 80% of the available properties because you don’t want to go through a realtor? Seller pays the fees anyways so you have nothing to lose. Plus you can see a bunch of homes to get an idea of what is selling in your area. Plus a Realtor can tell you what a certain property “might” rent for. Also make sure you do your own research on your own, look in the newspaper, internet search of rents.
Dan is right. Or why not bigger like a tri or 4plex. Since tenants are helping with the morgage, it is easier to qualify for. You will have a place to live and with your monthly rental income, you may be living there free. It all depends on the kind of deal you can make.
And use a realtor. They have the multiple listings and so much more than you would find on your own. Give them an idea of what yoou want and they will help you find it.
In my area its hard to find more then a mutlifamily for the price that I am looking to pay. As my first home I am looking to purchase a home up to 200k. The homes following this will increase in value.
I am in talks with Remax about looking for some homes in the New Haven/ Hamden CT area.
Any more advice that you guys can suggest for a newbie looking to buy a first home in CT?
What is your current living situations now? Are a renter yourself? If you are, you should figure out a way to change that. That is why I suggested looking at a duplex. That way you would be a home owner and a landlord at once. Sure there are pluses and minuses to this kind of situation. Why do you care if it is 200K or 250K? Unless you are paying cash, I wound’t worry unless it’s doesn’t cash flow.
Cash Flow = positive sum of money after all expenses are calculated ie Interest, principal, insurance, taxes, maintenace allowance, vacancy, landlord utilites etc.
Remember Cash Flow is important
I live home with parents still…haha . Like i said a recent college graduate looking to start off the right way. I have a measly income of 30k a year, so I cant really afford more then 200k, i figure its a good price range to start off with anyways, will give me room to grow. I know i am financing it and the price shouldnt matter but its just more that I have to pay if I dont get a rental right away
If being a newbie means never owned a home or haven’t in past 3 years you may be eligible for a CHFA (CT Housing and Finance) mortgage.
First time homebuyers are getting interest rates under 5% and getting down payment assistance. My last client bought a 135k condo with down payment and closing costs paid. My brother in law bought a 300k 3 family home through the plan also. With less interest, you can buy more house.
You must live in the house. There are other eligibility requirments also.
I’ll give you more details if interested.
I wish I know about it when I got my first house.
I also know a zero down lender in Manchester who has done 100% financing for my clients, so I could recommend him, too.
How much does a 200K property rent in your area?
And would it cash flow?
As a buyer normally you would not have to pay any realtor fees. The seller normally does so I don’t see why a realtor cannot help you find a home. The realtor will be able to help you look at properties you might not even be aware of that is not on the market yet and has access to MLS system (Multiple Listing Service).
Miles Takiguchi (RA, e-PRO)
Five Star Realty
My house in college was a 3 bedroom, 2 bath and rent was over 2k a month.