Ok Here Is My Plan
I have been living in NJ paying high rent while going to school to finish a degree in Finance. I receive 2-3k a month in natural gas royalties.
My plan is to move to Austin where I can easily buy a 2br condo for 60k. It will take me longer to finish school but in the meantime I can actually begin my REI career while in school which is impossible in North Jersey (ok nothing is impossible but this at least qualifies as quite difficult); those who live in this area know what I am referring to.
So does this sound like an ok plan. I figure it makes more sense to use this money to build equity while going to school rather than flush it away on rent. Besides from what I hear the Austin housing market is on the rebound and prices are amazing compared to NNJ
Although school will take longer UT has an amzing business school with a degree in Finance geared to Real Estate. So any feedback would be appreciated.
I think relocating for school purposes is a wonderful idea especially since you will have the opportunity to focus on real estate. However, if you are moving to TX just because homes are cheaper, you will find that your bigger reward will be in the areas of the country where home values are higher. Just my 2 cents.
Have you ever been to Austin? It is a great town and lots of hi-tech jobs there. UT has the largest enrollment in the country. Saying that, I don't know if you could find a 2br condo for 60k. I think you have a nice plan, but expect to pay 85-130k for a 2br. I live up by Dallas but spend time around Austin.
I also agree, don't move just because housing is cheaper. Look at percentages. Of couse, since you don't have to depend on a salary, I think 2-3k a month would be easy to live on. And a condo in a college town is a great investment. Do know, Austin is very crowded, but a nice place.
Happy Hunting. :-D
If your going to continue your schooling pick the area based on the school, then look into what you can purchase and what family (or friends) might be able to do to help. Can anyone cosign a loan for you? etc. The reason I suggest thinking about this is you would probably be better off buying a two to 40 unit appartment/house than a single condo. If you have watched recent discussions on price and CAP rates you will have a good idea as to the basics and, by and large, your equity will build faster when you have others (renters) paying the costs. You could have a larger property professionally managed (recomended) but you should be able to easily handle a fourplex or less with a bit of work.
Also consider that first time homebuyers can achieve 97% to 107% financing for a duplex (or maybe even a fourplex) just as easily they can for a condo, provided that they will be living there and they can qualify for the loan amount.
If you do buy the condo consider a three bedroom unit and rent two rooms out as a means to lower your costs.
Try to stay close to the school (right next to it if possible, no more than 1 to 2 miles if not) for better rent potential.
Good luck and enjoy school.