paranoid android wrote:
Hook 'Em wrote:
I'm still thinking about purchasing a home in Champaign or Urbana this summer. I know it might be too late to get resident tuition for 1L, but still am interested in buying. Is anyone else considering this option? Also, do any of the 1L's or 2L's have any advice from personal experience with this, or have any friends that have bought a place?
I am not from Champaign nor do I know the real estate market in the area. I do however have experience with home purchases both for primary residence and investment property and would caution against buying a SFR (single family residence) for 3 years.
The math can make sense, just make sure you do your homework and work with a qualified
Keep in mind the difference in tuition though - I think that's why Hook Em is considering buying. Not as a money making venture but a money saving venture...
True, and that will definitely effect the decision as he would in effect be saving $7k a year in tuition. I was looking into this myself but decided it wasn't worth it. Again I don't know the Champaign market very well but it looks (based of craigslist and zillow.com) that you could get a 2BR for around $120k. Interest payments, assuming a 20% down payment, will be around $500 a month, then add another $200 for taxes and insurance and your looking at $700. You could rent a comparable house for $750-$850 a month and not have to worry about the added maintenance, down payment and the closing costs on both ends of the sale. If you think the $14k your saving in tuition is more than the cost of buying then go for it, otherwise just rent and save yourself the stress of home ownership.
Sorry for the rant, but IMO if you want to buy, get a 2-4 unit place, rent the other spots out and you will be cash flow positive. And if you don't want to sell the property right after graduation you have a property that will generate income. Just my $.02.
Would be good to get perspective from someone who actually did this though.