Stamford, CT · Member since 2016 · 2 posts · 0 votes
First time investors here. My husband and I are looking to stop renting, and finally purchase a townhome or house to live in. Along side this, we also have equal funds set aside to purchase an 2-4 unit investment property. Ideally we would prefer to purchase our live-in home first, to get out of renting. Here are my questions, I'm hoping you may be able to give some insight to:
Would it be more beneficial to first purchase our residential home or an investment property? Or vice versa?
Investor · Portland, OR · Member since 2017 · 2 posts · 0 votes
9y
When I bought my first place I thought I wanted to buy a single family and go after investment properties later. I talked to my mortgage broker about doing that and he told me that the banks would not loan on an investment property and allow me to use the rental income as proof I could pay the mortgage unless I was already a seasoned landlord. Otherwise the only income the banks would consider is my personal income from employment. So he said to find a multi-unit and live in one of the units. Then in later on when I was ready to start investing the banks would take me more seriously. So I bought a duplex and lived in one unit.
Real Estate Agent · Havertown, PA · Member since 2016 · 31 posts · 10 votes
9y
I would buy a multi family property (2-4 units) and live in one of the units for at least the first year. They call it house hacking on here if you don't know the term. You will get better financing since you're living there plus if you buy it right you can basically live for free where your other tenants would be paying your entire mortgage. Then when you move out you will be cash flowing. Plus living there gives you hands on experience of being a landlord.
Fund Manager · Wayne, PA · Member since 2009 · 1k+ posts · 1k+ votes
9y
Personally, I prefer the multi unit route as you can get preferred owner occupied financing terms for up to a 4 unit building, but whatever you decide to buy 1st, I would buy with the intention of converting this property to a future rental. Four properties I purchased and lived in over the years became long term rentals at a later point in time and have contributed dramatically to my increase in personal wealth, best of luck!