Need Some Guidance...Possible First Time Investor

2 Replies

Hello BP!

First off, thanks for all of the great advice, it is a wonderful community filled with smart people. My wife and I have been going back and forth on the duplex we currently live in. Our landlord has offered us to buy both side of the property and we would occupy one side. Using a FHA loan would our main option right now but I don't know if we would be making enough on it per month considering the high asking price from our landlord (probably $300ishk for both sides but hopefully less). Rent is $1200 from the other side and that will remain occupied. We currently pay $1200 for rent so we would be living "cheaper" and hope to move in the next 2-3 years into another house and have this as our rental property. Is this a normal thing to even consider since we aren't technically turning a profit? I'm not even sure where to start. Any and all advice is welcome!

Thanks in advance.  

A totally normal thing to consider and probably a great idea. Depending on your rates and money down, you can probably cover your mortgage expenses and probably your operating costs with your rent received plus your rent savings. You will not have to pay property management because you live at the property and I can tell you are up for it! Then, you may not realize, but even without making any cashflow on the property, you will likely save money on your taxes. You will be able to write off depreciation and your other expenses. Finally each month you are paying down your mortgage and building equity. I say go for it! Many of us got started in situations like you - that can be the best way to get your foot in the door with investing (much harder to go out and find some 1% deal when you are new with limited funds). Good luck!

Originally posted by @Kat Horn :

A totally normal thing to consider and probably a great idea. Depending on your rates and money down, you can probably cover your mortgage expenses and probably your operating costs with your rent received plus your rent savings. You will not have to pay property management because you live at the property and I can tell you are up for it! Then, you may not realize, but even without making any cashflow on the property, you will likely save money on your taxes. You will be able to write off depreciation and your other expenses. Finally each month you are paying down your mortgage and building equity. I say go for it! Many of us got started in situations like you - that can be the best way to get your foot in the door with investing (much harder to go out and find some 1% deal when you are new with limited funds). Good luck!

Thanks! I appreciate the advice. That was my thought that even since we will be technically paying to still live at the property, the extra $300-$400 that we would have been paying towards rent can be saved for repairs, maintenance, etc. Couple that with the tax write-offs and what not, it sounds pretty promising. 

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