Is It Better To Rent Or Buy A House In Roseburg?

Being a real estate agent there’s a handful of questions I get on a weekly or even daily basis relating to whether to rent or buy a house in Roseburg…

“Is it a buyer’s market, or seller’s market?”

“Is it better to rent or buy a house in Roseburg?”

“Should I wait until the market drops?”

Today we’ll go over those questions and I’ll share with you my personal experience as a home owner and real estate investor, and how that relates to many of the clients I work with, and why I’ll never rent a home again…

🔴 Renting Vs Buying A Home | Why I'll Never Rent A Home Again... (2020)

Why I’ll Never Rent a Home Again…

At the age of 21 I bought my first house. I was uncertain I was doing the right thing. I had a lot of questions about buying vs renting. My parents weren’t home owners, but I always just felt like that was the next big step for me. I had been renting for a few years and started comparing the Roseburg rental numbers to what it would cost to buy a home. I talked with my local bank and found out that I could be approved and what my monthly budget would allow. 

After comparing the homes that were available in my price range to the home we were renting, I found buying vs renting in Roseburg was almost a wash from a dollar for dollar perspective every month. Many of the homes were actually nicer than what I was renting, for the same monthly expense. 

I purchased the home for $115,000 with a small down payment and currently owe $100,000 on the home after just a few years. My monthly payment is $700.

Today that home would appraise in the $175,000 range, and if I were to sell I’d make $50,000+ after all expenses. Instead, I choose to rent it out to a tenant to further leverage the benefits of being a homeowner and landlord. Renting the house out for the market rent of $1150, and collecting the difference between the rental rate and my $700 mortgage payment. That’s $450 a month in cash flow

If I were to have been a renter the last several years I would have nothing to show for it. I would be the guy in the rental whose rent continues to go up every year with inflation, while the landlord’s mortgage payment was locked in for the next 30 years. Imagine what the rent is going to look like in 10, 15 or even 30 years! And all the while, that payment is going to remain around $700 with the only adjustment being taxes and insurance over time.

So not only will I be collecting the $450+ every month, now the tenants are buying the house for me. They are paying off the mortgage. The $450+ a month helps pay for maintenance and repairs and puts cash in my pocket every month. I get to write it off as a tax benefit. And now have another leg to my retirement plan.

Imagine having 10 of these by the time you hit retirement age? This is just the easy first step into becoming a landlord and investing in real estate, but I could have also liquidated the property, made $50,000+ and bought another primary residence. It’s almost as if your principle mortgage payment is a piggy bank you deposit several hundred dollars into every month.

The number one rule is to always buy smart. The renting vs buying argument wouldn’t be in my favor if I had bought well above my means or bought in a crummy neighborhood. You can still always get lucky, but being successful in your goals as a homeowner you’ll want to do your research. Make sure you aren’t over leveraging, and have a good real estate agent or adviser to help you through the process

Good luck out there, buy smart, retire early! 🙂

-Your Realtor, Anthony Beckham

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