# What path should I take? Opinions, please.
**URL:** https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950
**Category:** NYSpeed Off Topic
**Created:** [February 7, 2011, 2:25pm UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950 "2011-02-07T14:25:28Z")
**Posts on this page:** 20
**Page:** 2
### Author:  [@Paulo](https://forums.speedlife.net/u/Paulo)
#### Post date: [February 7, 2011, 3:33pm UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/21 "2011-02-07T15:33:18Z")
> [@Karter](#):
>
> figure 750 a month is 9 grand a year per unit. depending on how many years you take out on the 125, your gonna pay 200k for it with intrest.
>
> so give or take 10 years and its paid off.
Ummm…
Are you trying to say 200/10 = 10?
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### Author:  [@Beck](https://forums.speedlife.net/u/Beck)
#### Post date: [February 7, 2011, 3:37pm UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/22 "2011-02-07T15:37:24Z")
> [@Fry](#):
>
> Well you’re on the right track that when interst rates are a touch under 5% and you’re paying $1800/mo in rent that you’ve got a great opportunity to improve your situation.
>
> However, don’t build. For two reasons:
>
> 1. You’ve never owned a house before.
> 2. (Correct me if I’m wrong) You’re not married or engaged.
>
> Both will change your priorities over time so whatever house you buy now will not be what you want to stay in forever.
Yeah, I’m not going to build…for reasons previously stated.
I’m not engaged (yet), I’m assuming _big gulp_ in the next year I will be.
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### Author:  [@SHOtime](https://forums.speedlife.net/u/SHOtime)
#### Post date: [February 7, 2011, 4:32pm UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/23 "2011-02-07T16:32:13Z")
(Assuming that you won’t change your mind about a double in the city…) The double in Kenmore/Ton is my vote. However, the only way that the $700 in rent from one unit will cover the mortgage will be if you put down 15-20% like you mentioned. If you can get it with putting 3.5% for an FHA, that’s my vote. Money wont be much/any cheaper than it is now. Take advantage of it.
Personally, I stayed away from Kenmore/North Tonwanda because the taxes there make it hard to cash flow properties with less money down. You will be hard pressed to get the combination of good rents/decent tenants and neighbors/and cheap houses that you can find in North Buffalo ANYWHERE in Western New York. My tenants are AMAZING at my place. As long as your picky…you can find good tenants for any well maintained/semi-updated place.
Let me know if you want to elaborate any more on anything.
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### Author:  [@Karter](https://forums.speedlife.net/u/Karter)
#### Post date: [February 7, 2011, 4:34pm UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/24 "2011-02-07T16:34:22Z")
> [@Paulo](#):
>
> Ummm…
>
> Are you trying to say 200/10 = 10?
no figure 9 grand x 2 units, plus him throwing in a little 20kx10=200
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### Author:  [@Joe](https://forums.speedlife.net/u/Joe)
#### Post date: [February 7, 2011, 5:14pm UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/25 "2011-02-07T17:14:44Z")
I vote option two. You can pick up the double later when you can look at it from strictly an income perspective and you don’t have to live in it. In the meantime rent a couple rooms to people you trust won’t wreck the place and have the money, and you wouldn’t mind living with. Pick off a couple people from the lofts possibly. The doubles market is relatively so-so right now whereas high-end singles have deals galore. Unless you pick a real roach you’ll have $100k+ in equity in 10 years.
This way, if anything happens and you get engaged/married, the house is yours. You might let her live in it, but it would not be a marital asset.
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### Author:  [@walter](https://forums.speedlife.net/u/walter)
#### Post date: [February 7, 2011, 5:32pm UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/26 "2011-02-07T17:32:07Z")
> [@Beck](#):
>
> I don’t want to make it seem like I’d be going broke, I definitely wouldn’t. I have a savings account with enough money for 8-10 months of expenses. I have a “house” account with a stupid amount of money in it from saving/inheritence/gifts.
Math doesn’t add up. “I have enough for 15-20% down” “$125k” “house account with a stupid amount of money in it”
But on a serious note.
Real estate in Buffalo always amazes me, always set up for owner/landlord setups.
Don’t buy a house, anticipating the rental income with help pay the mortgage (doesn’t sound like you are). Not worth the risk.
Having a rental, the higher end the better. I would far rather err on the side of the rent not covering the mortgage, than having scum bags trash the place and have to deal with trying to evict them after the don’t pay the rent. There are never any guarantees, but renting to young professionals is going to net you a lot better stability than 5 college kids. I think there are lots of great opportunities to rent in BLo from what I’ve seen, so I’d suggest going that route, assuming you can find something good, good price, good draw, etc. That sets you up well if you end up only living there a few years, because then you can just rent both units, and move on to the next house, whatever it may be.
FUCK renting rooms (IMHO)
Don’t know where you are getting your math on where the will/won’t make money tradeoff hits … :shrug: There are lots of people that have experience doing this, but you don’t really sound like you want to listen all that much.
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### Author:  [@deebo](https://forums.speedlife.net/u/deebo)
#### Post date: [February 7, 2011, 5:51pm UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/27 "2011-02-07T17:51:03Z")
My cousin just bought a sidebyside in williamsville or clarence, he is living in the one side, and is renting out the other to someone he works with or something. (pretty much guaranteed rent, and you know the person). He just got married though and plans to move out in a few years, by then it will most likely be paid off.
i am pretty sure that rent pays for close to 100% of the mortgage, and that depends on obv how much you want to put down. he’s set up so he can make the payments of the mortgage himself, and the renter, so he can basically pay more than double per month of what the mortgage is if he wants to pay it off.
i would go with option 1, out of the 2. it seems the way to go now, considering your age and situation
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### Author:  [@ultradriver10000](https://forums.speedlife.net/u/ultradriver10000)
#### Post date: [February 7, 2011, 5:57pm UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/28 "2011-02-07T17:57:21Z")
I don’t have any personal experience renting but I always wondered if you can make money off it. After you factor in increased insurance, taxes and interest do you make money?
My one uncle owned about 20 rental units and ended up selling them all. He isn’t super baller or anything.
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### Author:  [@OriginalSterm](https://forums.speedlife.net/u/OriginalSterm)
#### Post date: [February 8, 2011, 7:28am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/29 "2011-02-08T07:28:43Z")
> [@ultradriver10000](#):
>
> I don’t have any personal experience renting but I always wondered if you can make money off it. After you factor in increased insurance, taxes and interest do you make money?
>
> My one uncle owned about 20 rental units and ended up selling them all. He isn’t super baller or anything.
I have friends who are slum lords and it makes them a little bit of money. At least at first…
The mortgage is the balloon type, where the first few years are cheap and then you have a huge balloon payment at the end. The plan is to dump the house before you have to pay that. In the meantime, you rent to the people who are Section 8. The government basically pays you whatever the rent is (within reason), so your money is gauranteed each month.
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### Author:  [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)
#### Post date: [February 8, 2011, 8:12am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/30 "2011-02-08T08:12:31Z")
Honestly, the idea that your first home would be the one you live in forever is laughable. First-time homebuyers never know what they REALLY want long-term (especially that long) on the first try. I know you will retort with “Oh I assure you I know blah blah blah…”, but you likely really don’t.
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### Author:  [@LZ1](https://forums.speedlife.net/u/LZ1)
#### Post date: [February 8, 2011, 8:16am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/31 "2011-02-08T08:16:30Z")
Why don’t get you just get something near Xeons/my old house?
Those go for 160-200 and those houses sell quick people love the school district…
Worry about building a house down the line.
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### Author:  [@tpgsr](https://forums.speedlife.net/u/tpgsr)
#### Post date: [February 8, 2011, 8:26am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/32 "2011-02-08T08:26:32Z")
> [@Beck](#):
>
> Yeah, I’m not going to build…for reasons previously stated.
>
> I’m not engaged (yet), I’m assuming _big gulp_ in the next year I will be.
What is she turning 18 soon or something?
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### Author:  [@Paulo](https://forums.speedlife.net/u/Paulo)
#### Post date: [February 8, 2011, 8:38am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/33 "2011-02-08T08:38:51Z")
lol
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### Author:  [@joelster](https://forums.speedlife.net/u/joelster)
#### Post date: [February 8, 2011, 8:39am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/34 "2011-02-08T08:39:22Z")
> [@cougarspeed](#):
>
> You clearly are not looking at nice areas of the city. College kids and riff raff are not renting remodeled 900/mo places in parkside.
>
> Funny though when i had a college house I RUINED it was a rental in Kenmore.
>
> Glad you have this all figured out though.
>
> It is all about what you want to come home to at night. Obviously you understand this or you wouldn’t have the loft. If you could be happy walking in the door of that kenmore double knowing the potential benefits then sure do it.
Tell me where these nice areas of the city are? Sure there are PATCHES of a few streets here and there, but it is on a decline everywhere you look. I deliver all over the place in Buffalo, Tonawanda, Kenmore, Williamsville, Amherst, etc, etc. In Buffalo you can have $400,000 homes on one street, and 1 street over is a metro bus route with low income housing. It’s only a matter of time before one of those beautiful homes gets converted into a multiple unit and there goes the neighborhood. Go down Woodbridge avenue and look at the beautiful homes there. All are 5+bdr huge homes, then go one street over and take a look at Huntington ave. The exact same architecture, but a lot of them are converted to doubles. In the summer the grass is a foot tall in some of them.
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### Author:  [@LAFENGAS](https://forums.speedlife.net/u/LAFENGAS)
#### Post date: [February 8, 2011, 8:42am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/35 "2011-02-08T08:42:45Z")
I personally made the decision to buy a nice, newer, townhouse in a prime location as a rental. I’m fine if it rents out to only break even at the end of the month while somebody else builds my equity.
I made this decision based on the fact that i will not live in buffalo for very long and that i wanted to take advantage of very low interest rates.
I say the rental just for the fact that you can put yourself in a situation to continue to save and THEN buy a nice place. By waiting a couple years, you will then own a rental and a nice home. my $.02
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### Author:  [@POOPRA](https://forums.speedlife.net/u/POOPRA)
#### Post date: [February 8, 2011, 8:51am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/36 "2011-02-08T08:51:43Z")
> [@joelster](#):
>
> Tell me where these nice areas of the city are? Sure there are PATCHES of a few streets here and there, but it is on a decline everywhere you look. I deliver all over the place in Buffalo, Tonawanda, Kenmore, Williamsville, Amherst, etc, etc. In Buffalo you can have $400,000 homes on one street, and 1 street over is a metro bus route with low income housing. It’s only a matter of time before one of those beautiful homes gets converted into a multiple unit and there goes the neighborhood. Go down Woodbridge avenue and look at the beautiful homes there. All are 5+bdr huge homes, then go one street over and take a look at Huntington ave. The exact same architecture, but a lot of them are converted to doubles. In the summer the grass is a foot tall in some of them.
Real estate in the desirable sections of the city is definitely appreciating not declining.
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### Author:  [@joelster](https://forums.speedlife.net/u/joelster)
#### Post date: [February 8, 2011, 8:53am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/37 "2011-02-08T08:53:39Z")
> [@POOPRA](#):
>
> Real estate in the desirable sections of the city is definitely appreciating not declining.
OK, tell me where exactly? Give me a neighborhood or a street. Not doubting you, I just haven’t seen anything myself, and i’ve been all over the place there.
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### Author:  [@TurboTSi](https://forums.speedlife.net/u/TurboTSi)
#### Post date: [February 8, 2011, 9:12am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/38 "2011-02-08T09:12:58Z")
I bought my first duplex as my starter home for the reason that I was 26, single, and it made much more sense to me to have renters pay a majority of the mortgage/escrow. I basically lived for a couple hundred dollars per month. 2 years later I bought another house up the street from me and ended up living for free, all mortgage, utilities paid for. That allowed me to bank A LOT of money, I saved it all, and that gave me the opportunity to buy my single family home a year later, this past November. I was able to put $30K down on it and have a lot left over in the bank for other things that come up (like the roof I just put on the house).
My suggestion is to get a duplex, get respectable tenants (usually couples with a college degree), and enjoy it for a few years and BANK all of your money for your “dream” home later on.
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### Author:  [@Paulo](https://forums.speedlife.net/u/Paulo)
#### Post date: [February 8, 2011, 9:42am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/39 "2011-02-08T09:42:05Z")
> [@joelster](#):
>
> OK, tell me where exactly? Give me a neighborhood or a street. Not doubting you, I just haven’t seen anything myself, and i’ve been all over the place there.
Elmwood area for one.
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### Author:  [@Fry](https://forums.speedlife.net/u/Fry)
#### Post date: [February 8, 2011, 9:43am UTC](https://forums.speedlife.net/t/what-path-should-i-take-opinions-please/208950/40 "2011-02-08T09:43:51Z")
> [@TurboTSi](#):
>
> I bought my first duplex as my starter home for the reason that I was 26, single, and it made much more sense to me to have renters pay a majority of the mortgage/escrow. I basically lived for a couple hundred dollars per month. 2 years later I bought another house up the street from me and ended up living for free, all mortgage, utilities paid for. That allowed me to bank A LOT of money, I saved it all, and that gave me the opportunity to buy my single family home a year later, this past November. I was able to put $30K down on it and have a lot left over in the bank for other things that come up (like the roof I just put on the house).
I wish I had been as smart as you. Seriously. I bought my first house when I was 23. If I had bought a duplex and kept the yard and driveway for myself rather than just buying a big single family home I would have had a similar quality of life but be way better off financially. I’m already upgrading to my second house but if I had done that I would have had a bunch more money to put down and/or had a lot more toys over the last 5 years. Or maybe have bought a nicer house this time. Oh well, in my next life I’ll do it smarter.
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