Living in Your 1st Rental Property?

Living in Your 1st Rental Property?

Atlanta, GA · Member since 2018 · 3 posts · 0 votes

Hey Everyone,

I am still in the 1st stages of trying to still wrap my head around the whole world of Real Estate Investing. I am learning everything I can. House Hacking seems to be a pretty common place that people recommend starting out with in the rental properties area. I had someone recently give me the advice of living in my first rental property and just rent out the other rooms if it is a single family home. The only places I will be able to afford are way out in the suburbs, unless I strike gold.  I thoroughly enjoy the area I am living in currently. The rent is extremely cheap for the area and it is down town. Is it pretty common for real estate investors to live in another rental property while getting their own rental property started for others? How was everyone else living when they purchased their 1st rental property? This seems like a pretty easy answer to me, but the advice I received was pretty adamant I live in my 1st rental property even if it is a single family home.  Any advice would be appreciated! Thanks.

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  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    8y

    Some people do but they usually will invest out of the area for example if you do the math living in San Francisco your money will work harder for you if you rent in San Francisco and invest in other parts of the country as opposed to owning in San Francisco.  It will all depend on the math for your area(s) and situation.

  • Rental Property Investor · Salem, NH · Member since 2016 · 460 posts · 276 votes
    8y

    You could house hack temporarily and then move out, typically a lender will require you to live there for 12 months or some other specified amount of time. This could be a good way to get into the investing world and then when the time is up you can move back to the area you like. You will then need to decide how to manage the property (self vs professional PM) but that should be included in your analysis.

    I am house hacking now but plan on moving out when my time is up so I can begin cash flowing.

    Best of luck! PM if you have any questions.

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