Real estate question: friend is considering buying a 2 bd /1.5ba (technically 1 room is a den) for $830k in Irvine. Plan is to move out in 2 years once they have a kid and rent out for about $3k a month and buy bigger home later on. Monthly payment for the home will be $4500 a month. Her and husband are in healthcare and will start making $550k HHI starting end of this year. Does this sound reasonable?

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Why not buy a home they can stay in for longer or a home that they will be able to rent out and at least break even on? Even if they spend more than $830k it will make more sense.

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Part of it is their belief that the market isn’t going to get any better and to just buy now instead of spending on rent.

Not really? The monthly payment was fine until you mentioned the renting at a $1500 loss

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Makes a bit more sense - but typically from rental perspective you're "supposed" to be making minimum $200 each unit.

Also credits typically do not apply to rentals after you move out. So I would ensure your friend looks at the letter or the law.

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Hi,

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