This has been asked a couple of times, but I'm still having trouble with the numbers. I'm a grad student and will be in my area for another 3 years. I'd like to buy instead of rent, but given the crazy high prices and bidding wars because of COVID, don't know if it's a good idea.
The plan would be to put a 20% down on a 1 Br condo (~180K) for 3 years and then leave the area and rent it out to other grad students. Other numbers: rent I'd be paying if I didn't buy (~1000 per month), total monthly cost of condo (~1250 per month), I make around $3083 per month pre-tax.
I tried the NYT Buy-vs-Rent but it doesn't include keeping the property after I buy. How does that change the math? What else should I keep in mind? Is buying in a seller's market a bad idea? How will I know what the max amount I should offer is?
EDIT: I had mentioned $1000 above as the amount I'd be spending if I did not buy. I believe I would be able to rent this property for ~1300-1400 based on comparable other units in this building. The property is also on the nicer end (with stainless steel appliances, granite countertops, hardwood flooring, corner unit etc.) Sorry!