Garland, TX · Member since 2018 · 27 posts · 2 votes
Ok so I am in the process of leaning RE investing, my plan is to sell my residential home (3rooms 2 bath) to get into real estate since we need a bigger house due to 4 kids, my wife and I. We bought the house on 2014 for 99k it was in good conditions we only replace the AC compresor and right now it’s worth 175k we own 88k leaving us with 87k minus closing cost. My question is should I consider this my first deal when we sell the house?
One option you might consider is to rent your current primary residence when you purchase your larger home. As long as you have savings to cover your down payment for the new home, this can be one of the easiest ways to get into buy and hold rentals. You'll need to be sure you have a sustained and stable rental market there in Garland and that your home will cash flow at market rental rates, but it's something to consider.
Rental Property Investor · Pasadena, CA · Member since 2016 · 85 posts · 19 votes
7y
@Abner Gomez well it really depends on how you define your first deal. In terms of real estate ownership? Or accidental real estate house hacking investment?
Anyway it does not matter. What matters are you have learned something from it and be confident for your next deal.
One option you might consider is to rent your current primary residence when you purchase your larger home. As long as you have savings to cover your down payment for the new home, this can be one of the easiest ways to get into buy and hold rentals. You'll need to be sure you have a sustained and stable rental market there in Garland and that your home will cash flow at market rental rates, but it's something to consider.
Garland, TX · Member since 2018 · 27 posts · 2 votes
7y
@Yannes Chiang It was more an accidental but that what got me to think what should do since I been trying to get into different businesses and reading Rich Dad Poor Dad also the BiggerPockets podcast.
Rental Property Investor · Pasadena, CA · Member since 2016 · 85 posts · 19 votes
7y
@Abner Gomez That is actually a great start. You are on your way to become a REAL ESTATE MILLIONAIRE! I love reading books and have benefited a lot from it. Highly recommend you keep reading, well, reading the nutritious ones
The more you read, the more knowledge/tools in your brain. Look forward to seeing your next deal!
Irvine, CA · Member since 2016 · 545 posts · 614 votes
7y
@Abner Gomez Whether you pull out the equity and maintain the property as a rental or sell the property to invest in another property, I would consider this your first investment even though in your words you "accidentally" made a lot of money.
I did what @Christina J. is suggesting you look into. My first investment property was a condo I purchased while in Grad school back in 2003, I still have it as a rental in my portfolio today, When I purchased it I made sure it would work as a rental in the future since I knew I wasn't going to live there forever.
Garland, TX · Member since 2018 · 27 posts · 2 votes
7y
@Christina J. We did though about it to keep the house and just rent it but we have credit card debt so by selling the house we will eliminate al the debt and keep the rest to get into flipping. The purpose is to be financial independent and quit our 8-5 jobs.
Real Estate Broker · Minneapolis, MN · Member since 2016 · 530 posts · 398 votes
7y
@Abner Gomez idk. First housing purchase yes...but if you didn’t buy it with an intention to invest and produce income for you, no. You are just utilizing it as a current asset you have.
Garland, TX · Member since 2018 · 27 posts · 2 votes
7y
@Bjorik Mutize yes it’s an asset that I will use to get into this business and buy more assets also this is what got me thinking about real estate investing. It’s an eye opener.
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
@Abner Gomez You could consider it a deal but an experienced investor may not be impressed. However, you could possibly use it with a lender for further leverage/terms.