Hi BP community! I have been studying, researching, reading, podcasting, basically all the things to prepare for my first go at REI. I am a single mom who is fortunate enough to still live at home, with a steady income where I am able to save a good amount of cash per month and have good credit. I have enough saved for a decent down payment, but will still need to use tradition financing. I have finally narrowed down my focus to starting out by purchasing a duplex in my area. (I do not have the deal yet).

I have read and researched so much so, that I am getting conflicted info on a few things.

First question- I have read that it is BEST that i live in one side of the unit, and rent out the other, for tax benefits and financing options (owner occupied loan?) . Since i have the option of residing somewhere else, and can collect rent on BOTH units, wouldn't that out weigh both these?

I am also looking to further my portfolio by purchasing more property's soon after, which I will also have to finance. Not sure if this effects if I need to live in one of the units for the first year or two or not. (like i said, i've read SO much that i'm starting to confuse myself).

Also, is it worth setting up an LLC before my first deal?

Any advice would be so much appreciated. Trying to get my ducks in a row here!!!

Living on one side will allow you to only put 5% down vs 20%! If you want to buy more, keep more cash in your pocket. I'd move every year for 10 years until your conventional loan options run out. 

@Allison Christine

Welcome to BP!

Originally posted by @Alyssa Dyer :

Living on one side will allow you to only put 5% down vs 20%! If you want to buy more, keep more cash in your pocket. I'd move every year for 10 years until your conventional loan options run out. 

Thank you, Alyssa! Yes, putting as little down as possible would be best overall so I have more money for more property. And moving every year to receive maximum loan option benefits is great advice as well. Thank you.

Originally posted by @George Blower :

@Allison Christine

Welcome to BP!

 Thank you, sir! Good to be here.

Originally posted by @Allison Christine :

I am also looking to further my portfolio by purchasing more property's soon after, which I will also have to finance. Not sure if this effects if I need to live in one of the units for the first year or two or not. (like i said, i've read SO much that i'm starting to confuse myself).

Also, is it worth setting up an LLC before my first deal?

Any advice would be so much appreciated. Trying to get my ducks in a row here!!!

W.r.t. the first question, any property after your primary will be financed through an Investment product which will require a down payment in the 20-25% range. Unless you use it as a secondary residence then you're looking at 10% down.

W.r.t an LLC, you should always consult with an attorney so they can help understand your individual situation. That being said, LLCs are geared towards protecting wealth and also helping handle money in partnerships. Generally speaking, IMO, LLCs aren't necessary when starting out unless you are getting into a partnership with other non-familial partners.

Thank you very much Chris! Yes, I think I will wait with the LLC. Thank you.

@Allison Christine . Wait on the llc. Good idea