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Don't do a monkey see monkey do.
Take a look at your financial house, it sounds like you're -80k right now with no substantial cash on hand. You have a well paying job which is great, but fortunes can change quickly, If you've been on Fishbowl for a while you've seen the Layoff posts.
Play it cool for now. Get 15-20k liquid cash then reassess. Just my .02
"Normal"? Hell no! But I was happy with that amount knowing where we were salary wise and thinking where we would be in 5, 10 and 20 years. Google tells me the average is $6k. Spend what you are comfortable.
Do you have cash on hand? If not do you have a cheap way to finance the renovations?
Risky
No cash was thinking I'd move in and i know a few people that do construction so have them do it cheaply over time. It's quite risky especially since the economy is so up in the air right now. Just really want to get out of debt as fast as possible and I have a few friends that are buying real estate in this neighborhood and I know houses will definitely appreciate quickly.
I graduated in '12 with about $26k in debt. Paid it off in about 15 months, then saved and paid $20k cash for an engagement ring the following year. I gave up the chance to buy a $110k townhouse in the same community my dad had a rental that he was collecting $950 a month. I looked last week and similar places in the neighborhood are going for $155k. I'd have another $15k in rental profits after renovation and annual repairs. Not buying that place is probably the only financial regret I have.
I definitely want to get into real estate and that's what I'm scared of P1 is missing this opportunity but EY1 you're making sense. Probably wise to save some cash first then reevaluate the market. Thanks
@PWC1 is $20k a normal amount to spend on a wedding ring when you are 25? About to start shopping around and was not thinking of spending that much (though I am a few years older)
OP - I'll still get into it in the next 5 years. I could still clear about $300 a month after costs if I bought the $155k one tomorrow. I don't think rentals have as much risk. Simple here but, if markets rise I get the appreciation while clearly a monthly profit, if they fall I can rent it till they recover with a surplus of potential tenants.