First Home Purchase

4 Replies

Hello, I was looking for answers/suggestions on if I should buy a house or rent? I will be getting out of the Navy in about 2 years and I will be moving back to southern California, San Diego (Temecula to be exact, about 50 miles north of San Diego). I will have a job lined up and will be making about the same amount of money I am now (60K or so). I have a child on the way so it will be my wife and I plus the baby when we move. We want to get into rental properties as soon as we can. So would it make sense to buy our home and then save up for rental properties or rent a house and use the money we will have on rental properties (the money we would have used for a down payment on our home). Any advice would be greatly appreciated. Can't wait to soak up all the information on this site and prosper in the world of Real Estate. 

In my opinion, I would buy. The reasons for that is because your money is going towards building equity instead of basically throwing it away. You could look into buying a duplex and living in one side while renting the other, or just a SFH and build up some equity.

I just bought my first house in December 2013 and got it at a great price and it's basically a live in flip. I have over 20k equity in the house already (paid 54k for it) and I like to think of it as a nice backup for financing or an emergency fund for other properties I'd like to buy.

That's just my opinion and kind of how I think especially that I'm young and just starting out. Best of luck!

Originally posted by @Michael Worthen :

Hello, I was looking for answers/suggestions on if I should buy a house or rent? I will be getting out of the Navy in about 2 years and I will be moving back to southern California, San Diego (Temecula to be exact, about 50 miles north of San Diego). I will have a job lined up and will be making about the same amount of money I am now (60K or so). I have a child on the way so it will be my wife and I plus the baby when we move. We want to get into rental properties as soon as we can. So would it make sense to buy our home and then save up for rental properties or rent a house and use the money we will have on rental properties (the money we would have used for a down payment on our home). Any advice would be greatly appreciated. Can't wait to soak up all the information on this site and prosper in the world of Real Estate. 

 Have you seen information on house hacking on BP? They're doing a webinar on it tonight. I'm also in California and it would be rough to get enough capital to both buy a house and a rental without that strategy.

@Michael Worthen Buy with a twist. If I had found BiggerPockets before buying my houses I would have bought a duplex, lived in one and rented out the other. I think most on here would suggest the same thing. Keep in mind though nobody knows your finances and you should calculate the cost of each option. The numbers are the numbers.

Thanks for the advice! 

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