I have a unique situation where I live in a town with not-so-great rental options. The houses here are decent, but there’s a chance I might have to move before the end of 2025. I’m planning to use a physician loan to buy a house and probably won’t put much, if anything, down, which means no PMI. I’m not really looking to sell for profit. If I manage to get a decent house that’s less than 20 years old and I don’t cause significant damage, what are my chances of breaking even if I need to sell in the short term? From what I’ve gathered from similar posts, I’d have to increase the sale price by the amount of closing costs and fees just to break even, which might not sit well with new buyers. Considering the risk, what’s the most likely scenario—losing the 10-15K in closing costs? If that’s the case, it wouldn’t be much different from renting for the year. Are there any other things I’m missing? Thanks for the help.
Honestly, if you sell in less than a year, you’re almost guaranteed to lose money. Just keep that in mind.
With 6% realtor fees and closing costs, your home would need to appreciate by about 8% just to break even. I’d recommend renting for the year instead.
Owning a home is a full-time job, no doubt about it. Focus on finding the best rental option and concentrate on med school.
It really depends on your location and what the local market is doing. Just remember that selling will likely cost more than buying due to realtor fees. I wouldn’t advise buying for the short term right now.
The transaction costs can really add up. Also, don’t forget you’ll be paying a mortgage while trying to sell.
You should also think about how long it typically takes to sell in your market. If you have to move for work suddenly, you might end up paying that mortgage for 3-6 months while your house is on the market.