Start thinking compromise(I like to call it cooperation) with your wife. I told mine that I wanted to move to Arkansas but if she wanted to stay in San Diego I got to pick where and how(since I was giving up Arkansas).
The condo seems like a bad idea. The rent is only going to be applied at .75 gross rents by the lender. If you are renting negative it will be a hit there too. Also as amateur landlords you want to really think about handling above average vacancies and a costly eviction as a distinct possibility. I think the condo hurts you when you want to buy the house and puts you at risk for major trouble.
Houses are going to get more affordable. Affordability is part of the normal business cycle. For Schizo’s sake I won’t go beyond that prediction. Are houses truly affordable where you want to buy? That doesn’t mean can you afford it. It means can most of the “demographic” who would normally buy there afford it in good times and bad.I don’t think there are many “first time buyer” or “move up” areas that fit the description.
My suggestion is to wait .Buy when affordability is near its best.When you buy, buy less house than you can afford and strategize to buy rentals or use that house for a rental and buy another some time down the road.
Of course some large percentage of people will not intentionally buy less house than they can “afford” . Take it as food for thought.
If you still want to buy, buy the house and buy less than you can afford. Alternately buy the condo with something more like a 7-10 year plan to live in it. I don’t like the idea of a condo for you but that might be more realistic.
