Buy in 2 years or rent in 2 years

6 Replies

So I'm brand new to BP and also to Real Estate investing. Was considering saving aggressively for about 1-2 years for a good down payment on a SFH or duplex in my area for rental income, but thought I'd also like to buy a new personal home for me and the fam (wife and 4 young kids). I have approximately 8 years left on my 15 year mortgage at 2.65%. So the question is should I use the money I would be saving to go towards a new personal property and try and rent out my present home or just stick with the first plan and buy a rental in 1-2 years? I realize it may be a personal decision but just curious as to what some more experienced investors thought.

Personally, I would find a nice duplex that works for your family, and rent out your current house. You've a great low interest mortgage that you can take advantage of.  (unless your house doesn't work as a rental - numbers or location wise)

Keep your wife happy. Having 4 children is hard, why make it also unpleasant by moving into a duplex? Astonished at your interest rate. Its a wonder anyone moves with those kind of rates locked in. I guess getting Owner occupied interest rate would be the only reason to move to a duplex...then move back. But what a hassle.

@Brett Wagner Hey Brett, sound like you have a good intrested rate with the house. I’d just continue saving up and/or pay off your house quick and go from there. Are you planning on investing in Tyler? Longview? Henderson? Just curious.
@Brett Wagner I would take the emotion out of it and run the numbers on your property that you live in right now on BP rental calculator and try not to bias(which isn't easy on your personal property). If it makes sense as a rental then you have a option if it doesn't then keep going on your planned track. Remember things like the 1 or 2 % rule and what you want to cash flow to make it worth it. Welcome to Bigger Pockets