Hi Brian :o)
Buying your first home can sometimes seem a daunting task, but I applaud you for looking to make a smart investment during a great time to buy and doing some research into your options before making the move.
If you have the financial ability, I have seen some people use the strategy you suggest over the years and they are generally pleased with the results, however, Chris makes an excellent suggestion below in stating that your best bet would be to consult a mortgage professional to go over the options available to you so you can make an informed decision which is best for you.
Thanks to a heavy military population, we have continues to have an active market with the average move rate of 3 to 5 years instead of the national average of 5 to 7. Many of my military clients use their homes here as rentals while they are finishing out their careers because they intend to move back here after retiring. Recently I have also seen some clients with the financial ability to hold 2 homes use their Colorado Springs property as a rental while living in different areas of the country. The Colorado Springs rental market is competitive and rental rates remain competitive as well, so the keys to success with this strategy would be to make sure your loan will work for you while you are living in the property, to make sure you purchase in an area that is desirable to future renters, and make sure you have the right financing to allow you to cash flow the property at a reasonable amount.
If you are looking to buy in Colorado Springs as your post indicates, you should be aware that for the most part our market is not suffering the severe depreciations that many areas of the country are. In fact some areas in the northeastern part of our city have even seen a slight appreciation of around 1% over the past year.
Right now the best rates we are seeing in Colorado Springs are being offered by Credit Unions, however there are a few solid banks that are also offering competitive rates. I believe it's important to look to using a lender who is local to the market in which you are looking to purchase because they are aware of local issues, charges and practices that can help make your loan and purchase process go smoother with less surprises.
If you would like I could refer you to several local Colorado Springs lenders who could best advise you and I have mortgage calculators available on my website at http://www.brianwess.com/MortgageCalculators
that will allow you to explore different scenarios.
Brian L. A. Wess
CRS, GRI, ABR, ASR, CSR, e-PRO
RealtorÂ®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
COLORADO REAL ESTATE...DONE RIGHT!â„¢
Voted "Best Realtor in Colorado Springs 2006 & 2008"
The Independent News Readers Poll: Gold 2006, Silver 2008