So I'm looking to get into the RE investing and I also need a house to live in . I live and work in SoCal (the valley) which is pretty expensive but I figure I have a few options . Looking for some advice from some experienced investors on what you guys think would be the smartest and best route to take. I could buy a house single family live in it and fix it up then rent it and then find another ( more expensive area to be closer to work ) . Or buy a condo/townhome closer to work and live in , and also buy a house to rent out further away ( this would be around the same cost as the one house closer to my work)? Any advice greatly appreciated!
I subscribe to a philosophy that may resonate with many on the forum:
1) Your Primary Residence: Consumption, not investment. Think of your primary residence the way you would like a good car or a nice bottle of wine. You want to have what fulfills your needs and makes you happy, while being reasonable. Living closer to work may do just that. Here is a great interview with John Schaub that is keen on this point.
2) Investment Property: Is first and foremost a numbers game. Don't try to make an 'investment' work by fudging the numbers in favor of a shorter commute. In these cases you end up with a high priced liability.
The real question is, can you have both? Maybe, House Hacking is a popular practice here on the forum, and I think it makes complete sense. It's probably a bit better in multi-family markets. If you have well defined goals with the SFHs you are occupying, then you can make it work in a flip situation.
Just remember, when you house hack, you are putting the investment just above your consumption. If you and your family can live with that, than I highly recommend it. My wife and I are currently looking for a 3-4 unit in whatever city we want to move to, next.
I'm live the SFV (Tarzana) so I know exactly what you're talking about when you say expensive. I'm also new two investing but what I have learns is that you buy multiple units and let the units pay for your home. If you invest in a four unit building you can rent out three and live in one temporarily. When you've built up enough capital you can take some of the equity from the four unit and use to buy a home wherever you desire.
Thanks Michele and Trevor , appreciate the advice . Me and my wife are going to look into house hacking and see if we can find a duplex/triplex/or fourplex . Might have to sacrifice a little in the beginning brutal with the goal to get a better place and investment .
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