Low income home buyer needs help

**amazinmets73** · 02-26-2010, 12:29 AM

I'm a 22 year old man from NYC who currently lives in Des Moines, Iowa. I own one paid off house in Des Moines, a fixer-upper I bought in early 2008 for 18,000 dollars cash. The house is paid off. It
s a 6 bedroom 2,600 square foot house.

I have been making renovations with the house since I purchased it. My plan for the house is to rent it out on a room by room basis as I finish renovations. When the market clears up, I'll sell.

In the meantime, I have been thinking about buying another house while the market is so weak, houses in Des Moines are VERY cheap right now. I believe I can steal a house that doesn't need THAT much work for 15K or so, honestly. I will pay for the house in all cash.

Im a low income guy, my work is off the books, but I'd estimate a yearly income at around 20-25K a year. I have mastered the art of living on rice and beans so despite my low income, I still manage to save the majority of my income.

What do you guys think of me buying another house in the Des Moines area at the present time? Your feedback is greatly appreciated!!

**Chrisopher Moltisanti** · 02-26-2010, 04:17 AM

"...think of MY buying another house".

If you're used to living on rice and beans and have the money, go for it. The market in my opinion isn't going to "clear up" for at least another two years. If you're planning on "selling high", you'll have to wait this out and rent out your properties as you're doing. Hire a Realtor. They'll screen your tenants for you.

Good luck.

**mWoods** · 04-01-2010, 12:53 PM

This is a decision only you can make but if you have done it once you're likely to succeed a second time. It's very interesting the amount you are willing to sacrifice to own a home.

**maui** · 04-05-2010, 12:06 PM

I am not familiar with your market, but in general this is a phenomenal time to invest in real estate. Being that this was originally posted a month and a half ago, do you have any updates, mets?

**Partizannka** · 04-06-2010, 05:46 AM

Surely, one should now the background of the location to give you some efficient advice.. but the more property the more income, isn't it?

**agentsranking** · 04-07-2010, 09:22 AM

You're going to need to see some serious appreciation to make much money on the deal. Even if you get 5% per year on a $15k house you're only looking at $750 per year. House maintenance on a rental could easily exceed $2000 per year or more which is going to result in you going backward.