Rent vs Buy in Lincoln>Question Details

Richard Luger, Other/Just Looking in Lincoln, CA

I'm moving to the Sacramento area with the miltary in a couple months. I'm pretty confident that i'll only be thre for two years.

Asked by Richard Luger, Lincoln, CA Mon Mar 5, 2012

Coming up with a 20% down payment is very do-able. Should I rent, or buy and eventually lease out a single family home? Why? Thanks for the advice.
Rick and Mary

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I just assisted an ex-military family that are following the same plan you mentioned. They bought a single family home to live in here for two to three years. When transferred away they plan to rent it for enough to pay the mortgage and all expenses, with some positive cash flow left over. This is a buy and hold strategy that works very well over the long term. They have already done this in the state that they came from and are on their way to building a nice positive cash flow rental portfolio.

In the very long term, as long as they resist the temptation to refinance and draw out equity, they will have these rental homes paid off in thirty years before they reach retirement age.

Another advantage that you have, buying into our bottomed out market as an owner occupant for two years, is that you get the owner occupant mortgage rate for the entire 30 years even though you are owner occupant for the first two years, only. I think your plan is smart.
0 votes Thank Flag Link Mon Mar 5, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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Hey Richard,

Well..your getting close to your move in a little less than a month or so.
Have you considered using your VA for your purchase?

VA is excellent and offers the following benefits:

*100% financing! (You can put down $$$ if you wish)
*All closing costs paid out our unqiue lender credit!
*No mortgage insurance

In terms of documents I would need:

1. Last 2 years of W-2s and Federal Tax Returns with all schedules & all pages.
2. Last 2 mos of bank statements from all accounts with all pages.
3. Most recent 2 paystubs (covering a 30-day period if paid once).
4. Any IRA, 401(k) or other retirments statements
5. DD214 (we will send for your certificate of eligibility)

I can pre-approve same day and we can get you out shopping. Comparatively speaking, buying is stronger than renting when you compare payments & what you get with renting VS. payments & what you get with buying.

I'm here to help. Mike 916-813-4003 or shoot me an email!
0 votes Thank Flag Link Wed Apr 18, 2012
You have answered your own question my friend.

If you are only going to be there for two years and then move, why in the world would you buy, move out, and leave your money behind? If you move the furniture, move the money as well.

Please rent Rick. I know that Mary may be wanting to own a home and that is great. But this is not the time. You need to be mobile and non-committed to a property right now. Enjoy your Mortgage free life

You non-agent friend,
Chris
0 votes Thank Flag Link Tue Mar 6, 2012
Hi, Rick & Mary...Yes renting is a great idea if you do not know the area, but if you do, prices are down and so are interest rates so now is a good time to buy. Try our website for lots of good info,I think you will be able to get alot of your question answered.
0 votes Thank Flag Link Tue Mar 6, 2012
We usually encourage renting for a while to become familiar the diversified areas and elevations especially to the ease of Sacramento. You may find 2 regional videos of help on our website referenced below.
0 votes Thank Flag Link Mon Mar 5, 2012
Hello,

Right now is a very favorable time to buy because prices are low as well as interest rates.

Feel free to log onto http://www.ZekiHomes.com for properties in our area.
Web Reference: http://www.zekihomes.com
0 votes Thank Flag Link Mon Mar 5, 2012
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