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Im also 27 and the same financially(100k saved, make around 100) and think I can afford a little over 300 max..
At 2-3% interest rates sure, at 7% no beuno
Beaches are risky. What's the flood insurance? Chances of hurricane?
For context: I live in Charleston, SC. Love my location but probably wouldn't buy right on a beach in a seasonal town
I owned a rental in coastal Texas and sold because of hurricane threats. It was too much stress and hassle.
Don’t do this. Your best strategy is house hacking as you get started. Find a 5 bedroom house for like 300k, rent rooms for $800-1k a month. Depending on the area it can do really well. My nephew did it with his first house, got free rent, built equity, they all improved the home, and he sold it to one of them and rolled the equity into a riverfront property. Airbnb is seasonal, neighbor issues, it’s unreliable. My Airbnbs are 100% paid off. I wouldn’t risk my financial future on their stability. I couldn’t rent them the last 4 months due to construction noise. Another had a neighbor calling the cops on every Airbnb guest. It was legal, registered, didn’t break any rules. They just didn’t like new people in the building.
Mentor
What do your calculations show your net revenue would be? Are you renting somewhere else when you’re not living at this place?
Mentor
Have you done research to determine market rates for rental income? Short term or a medium term 6 month renter? What if a renter decides to stay - will local laws support them?
What kind of rate could you get? With your income I’m not sure you’d be able to be approved for a conventional mortgage…you’d likely have to go the investment route.
I’d say it’s too much. I bought my house with a $305k mortgage when I was earning $145k. With a 5.5% interest rate my PITI is $2860/m. Depending on property taxes and insurance you could be looking at more than that with current interest rates.
I wouldn’t do it. Not a good time to buy, especially if you’re worried about affording it.
Do you own a house yet, for yourself? If you don't own a house for yourself, start there. Remember that there's nothing more efficient in real estate than living in what you own, since rent is pure loss.
There's nothing more efficient than living for free at your parents while renting out a property.
Mentor
Definitely not suggested to buy a house like that as a vacation rental, even if only half the year. Vacation rentals have high start up costs with furnishings and such. You also need to have a lot of reserves for vacancy, supplies, etc… and they can be a lot of headaches with turnovers, repairs, and guest communication. It also only takes one pissed off city council member to implement new rules / laws (a permitting process, minimum stay lengths, or other hurdles) that can destroy both your revenue and resale potential.
This is highly risky. If you’re going to explore an investment property as your first property, I highly suggest a mid term or long term rental as those are much less volatile and have much fewer headaches.
I don't think you'll qualify for a loan given this information.