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)
Thanks Chris! That sounds great... to me. My wife might not like living in a duplex, though!
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 I wouldn't put the family in a duplex when you don't need to. Especially when you need 5 BR's! Save your money for 20% DP on a duplex or better.