My husband and I have 2 kids and have already started looking for properties in the Hampton Roads area of VA. Family of 4, ideally I’d like to live in a long term single family home. House hacking just seems like a stretch for us as we are going to be in VA for a few years. We want to start investing right away so we’re thinking VA loan for primary residence purchase, conventional loan for our very first investment property shortly after. We will not be in VA forever so ever our single family will become a rental. Any thoughts or suggestions would be appreciated. Thank you.
i like the idea of buying homes that cash flow before buying your primary residence
I'm in Colorado so the average home is around 500k so would have been nice to start with 10 or so properties in another state that cash flow the amount needed for a primary residence
Just my opinion
Thanks for your response. Where would live until you had your 10 properties if you had a family of 4? An apt?
@Maya Dib slow and steady wins the race. If you have the down payment, have reserves and can afford the carrying costs of the rental it's probably not a terrible idea. It's probably not the fastest nor provides the highest returns but again it doesn't sound like that is what you are shooting for. It's simple, straightforward and if you have the money very doable.
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@Bill S. Maybe other ideas that I haven't considered
@Maya Torres it really depends on how much you want to dive into the business. The best deals are found off market but not all off-market deals are good deals. Personally, I like small multi-unit properties. Here 3-4 units sell for less than you can buy 3-4 SFRs and if you pick the right property, they rent for nearly the same amount. They do have a higher price point (barrier to entry) but IMO are better in many ways.
At any rate, you do need to spend a good amount of time learning. Learn your market and learn the business. In reality it's easy to buy a bad deal when you are starting out. At the same time it's easy to not do anything and end up never investing. Give yourself 6 months to learn and then 6 months to buy. Most agents want to show you 5-10 properties and have you buy one. You need to "see" a hundred or more. I won't think you would waste too much time if you actually looked at 50 properties. Once you do that and apply the knowledge you have gained you will have a very good idea of what your market is and what you want.
The other option is to do a little research and jump in and buy. You will then learn as you go and hopefully make a good decision and have the reserves to cover bad decisions. You don't have to learn it just reduces the risk of costly mistakes.
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