Re: Real Estate people: I want to buy a house, advice?
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Why buy two 120k houses w/ one as investment (when RE investment prospects look anywhere from grim - breakeven) when you can buy a better house to live in ($200-240k) at a better location farther inside Austin?
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Because he can live in one home and sell the 2nd when the market goes back up. In the other scenario, if he lives in one home twice as expensive, then when he sells he has to turn around and re-buy back into the same market, which has also already appreciated. So keep one home for utility, and the other for investment.
Doing the one home thing would only work if he planned on re-buying into a cheaper market. In the US, there aren't a heck of a lot of markets cheaper than Austin.
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