We’re not going to get into whether or not this is a good time to buy. It’s obvious which side of the fence we’re on. We can never go back to renting again (mostly because of our pets). As long as you don’t have plans to flip the home within the next few years, why put it off?

If you’re thinking of buying a home, the first thing you need to do is get your finances in order. What kind of down payment do you have? Talk to a mortgage broker or bank. They will help you figure out what you can afford. Keep in mind that you must feel comfortable with the monthly payments. Just because the bank gives you the bucks doesn’t necessarily mean you can handle it, although they are cracking down on that stuff.

Now that you know your price range, figure out what area you can afford. Don’t only look into homes, but make sure you will be happy in these neighborhoods. Schools and safety matter to most folks. Since we’re child free, we’re willing to “pioneer’ it, within reason. What we look for is convenient location, racial, cultural and economic diversity, good housing stock and pockets of gentrification. It’s usually a good sign when you see a gallery here and a trendy coffee house there. Seriously, make sure you like the vibe of the neighborhood!

Keep your options open. You may be thinking you want a renovated single family in an up and coming neighborhood. Perhaps you can swing a 2 or 3 family in need of TLC in a more suitable neighborhood. We can’t stress enough how helpful it is to have tenants help with the mortgage. You may also consider splitting a multi family with another party. As far as fixer uppers go, we are total DIY people, but have never gotten away with doing a reno for under $100k. But that’s ok if it’s livable and spread out over 10 years. Just keep that in mind!

Narrowing it down. Only expect perfection if you have tons of money to spend. If you’re on a restricted budget, chances are you’ll have to compromise on the best house within your price range. Sit down with all the info on the homes you’re interested in. What works best? Which neighborhood do you prefer? Can you get more for the rentals if it’s a multi family? What are taxes like? What kind of repairs does it need? “Renovated” older homes aren’t always a good thing. You don’t know what the previous owner covered up.

Be prepared to buy, not just look. Keep a pre-approval with you when you go looking and make sure you’ll be ready to put an offer in if you see anything you love. Yes, it’s a buyer’s market, but some neighborhoods and homes are still in great demand. Know which inspector and attorney you will use. Once the offer is accepted, you may have to act fast.

Just one final thing. If you want to do the DIY thing, plan on not having a life for the next 10-15 years. Otherwise….it’s all good!
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