If you’re a first-time homebuyer, you’ve probably noticed that the dream of buying a single-family home feels more out of reach than ever. Home prices have surged, competition is fierce, and inventory is tight, especially in that entry-level price range.

But here’s the play smart buyers are running right now: Buy a condo. Live in it. Build equity. Move up.

🧠 The Strategy: Buy Smart, Build Equity, Level Up

We’ll use some estimated figures for this article, every property & scenario will be different but this system can easily be replicated. Need help? reach out to us anytime.

Let’s walk through a real-world example I often help clients with:

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🏡 Step 1: Buy a $350,000 Condo with 5% Down

• Purchase Price: $350,000
• Down Payment (5%): $17,500
• Mortgage Type: Conventional 30 year
• Estimated Monthly Payment: ~$2,650
  (Includes mortgage, property taxes, mortgage insurance, and estimated HOA fee)

This gets you into homeownership with a manageable monthly payment and a lower upfront cost than what’s required for most single-family homes.

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⏳ Step 2: Live There for 5 Years

While you’re living in the condo:

• You’re paying down your mortgage
• You’re building equity through appreciation and principal reduction
• You’re gaining homeownership experience without the stress of full maintenance

You’re no longer watching from the sidelines. You’re in the game.

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📈 Step 3: Use It as a Stepping Stone

After 5 years you’ve:

• Gained 25% equity through appreciation in home values, on top of the 5% you put down. Equaling a total of 30% equity.
  • On average: homes in NH appreciate by 5% per year, with some years like 2020-2022 being significantly higher.
  • Data: https://www.zillow.com/home-values/39/nh/
• Gained enough equity to remove mortgage insurance, saving around $117/each month.
• Reduced your mortgage payment to: $2,511/month

✅ Option 1: Sell and Use Your Equity to Upgrade

Your condo has appreciated by $87,500 and you’ve been paying down your mortgage, meaning you now have $125,537 in equity to work with. You can sell the condo and use that equity as a larger down payment on your next home, maybe a single-family house in a neighborhood you love.

This puts you in a much stronger position than if you were still renting and trying to save for a first purchase.

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💰 Option 2: Keep the Condo as a Rental Property

Depending on your goals and the market, you might choose to hold onto the condo and convert it into a short- or long-term rental. If you’re planning on going this route I recommend checking out the rental market in the area you’re looking at before.

That means:

• Monthly rental income (potentially covering the mortgage or even generating cash flow)
• Continued equity growth over time
• A step into real estate investing with a property you already know and trust

Whether it becomes a side income stream or your first of many investment properties, this move can build serious long-term wealth.

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🤔 Why Not Just Wait to Buy a House?

Because while you’re waiting:

• Prices will continue to rise (remember that 5% up above?)
• You’re paying rent and not building equity
• You might miss out on the compounding benefits of owning property

A condo lets you start now, on your terms, and puts you in a stronger position later.

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🏁 Final Thoughts: Your First Home Doesn’t Have to Be Your Forever Home

Buying a condo isn’t settling, it’s strategic. It’s a first step toward long-term homeownership and financial freedom.

If you’re feeling stuck between wanting to buy and not being able to afford a house, let’s talk. I help a lot of first-time buyers use this exact condo playbook to get started and it works.

Let’s get you into your first home.

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Disclaimer: This is a very realistic scenario but properties, costs and values will vary based on your individual situation and market conditions. This is not a promise to lend.