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Is it Better For Me To Rent Or Buy A House?

Mark's with us in Corpus Christi Texas

hey Mark welcome to the Dave Ramsey show

are you doing better than I deserve how

can I help yet so kind of found myself

an interesting scenario I graduated

school about a year ago now and I work

offshore on oil tankers and I'm home for

about two weeks out of six with my

parents still making 109 and kind of

wondering whether I should look at

renting or buying but I do want to get

out of their house soon but I don't know

if I'm going to end up where I am long

term so trying to decide between running

something or buying something I can

actually gain equity in I wouldn't buy

until you know where you're going to be

for a while okay how old are you 24 okay

I would run for a while

and let's just see what's going on and

you know your best option would be to

get something like with two or three

roommates for two reasons one is it

lowers your cost substantially and

you're never there so you're the ideal

roommate right and I'm actually home out

of the 14 days I'm home I'm only there

for a piece so it and that that's what

concerns me about renting is it's kind

of like throwing throwing money away cuz

I'm not there and yeah the money weighs

I'm not you know gaining equity wherever

you are but I would your throwing your

money away when you're renting anyway

but really what renting is is patience

because when you buy something that you

get such a permanent decision that you

need to have a situation where you say

I'm gonna live in that property for

three years or you don't need to buy so

and you're not really there right now

you're making a ton of money you're a

young guy you're never home so anything

you can do to just have an inexpensive

place to camp

that's not your parents when you get

home for those two weeks out of six

right yep and so again I think you're

the ideal roommate in

so you don't need much of a spot you

don't need to take up much room and so

like if you know you guys rented a three

guys rented a three-bedroom house

together and you took the worst room and

you get the best deal you know you don't

pay a full third or something right and

you don't worry about splitting food

with them and you don't worry about

splitting anything with them because

you're not there you're looking for a

place to camp a couple weeks a couple of

weeks out of six and so you just want

something where you can have a place

outside your parents right now and a

place to hang you know when you're in a

place to put the hang your hat when

you're home

there's no shame in staying with your

parents right now either

for a little while cuz you're never

there would you consider I'm gonna I'm

in a resort area would you consider a

resort property that would rent it when

I wasn't using it that I could block off

the two weeks I was home if that could

cover half to three-quarters of the

mortgage and probably a cool idea I'd

wait a year to do that I just have I

mean you're 24 you're making a pile of

money I think a lot of stuff's gonna

change 12 months from now I don't think

you're going to be doing things exactly

the way you're doing them 10 years from

today right and so buying your property

is a very permanent decision and resort

properties either go way up in value or

way down in value they don't just kind

of hang out in the middle like regular

properties too so it's a higher risk

real estate play but it is a good way to

you know to handle the rental you could

VRBO it or have a management companies

rent it on the times that you're not

there that wouldn't be a bad idea at all

but I really I would just try to find

some roommates for a year and just kind

of see how things end up before you

start writing checks to buy something

how much money have you got saved I've

got my emergency fund and then I've got

about another 40 okay all right have you

priced like a little one-bedroom condo

in a resort setting the 1-bedroom condo

is I'm looking at about 150 and I should

have it paid off and if I put what I

have down I can have it paid off in nine

months

yeah you might want to do that that'd be

okay that's not in the world just keep

it conservative and try to buy something

with the idea of what what it's going to

be easy to resell all right and what can

turn about the resort properties at 700

to 800 dollar you know maintenance seize

every month and those properties yeah

but if you can keep them full enough to

offset your cost and you get the thing

completely paid off in a short period of

time it's it's not that big a deal you

know so it's up to you it's up to you

that just it's it's it's not a sin

you're not like being completely

financially stupid to wait one year to

do anything and just pile up a bigger

pile of money well if you had 150

thousand dollars cash in an account

right now just to buy something what

would you buy

probably a single-family home then

that's what we need to talk about to the

resort yeah and talk about having a

management company run a VRBO on it for

you where you put a couple of roommates

in it buy you a 3-bedroom house and put

a couple of roommates in it you make

money off of them you know as the owner

of it let's talk about doing that and

then when you're you know they're

watching the property while you're not

there because you're out of town they're

watching your stuff you know there's no

boarded up house half the time kind of

thing and and then you that's not a bad

play but and but again hey hey when you

buy something like this in your

situation the house needs to be boring

easily sold because there's a lot of

houses like it you know so think about

I'm 26 and I I don't want to get stuck

with this house because I made a

decision when I was 24 and it's a weird

house or something so yellow

three-bedroom and put a couple of

runners in I mean a couple of roommates

in there that pay a lot of money to you

and you know you pay that off in nine

months that doesn't scare me if you want

to go ahead and do that that's fine but

do it boring do it boring you're doing

good man you're making a lot of money

congratulations very well very cool