Buy primary residence or invest in cash flow properties?
Hi everyone, I’m new to bigger pockets, started listening to the podcasts this week and just signed up today.
My question might be a bit unique, but I wanted to get some advice. Should I buy a primary residence for my family or continue investing in cash flow properties?
My wife and I are currently renting and saving our money to buy a home to live in. The problem is I live in a very expensive market ($1.2M average home price) so were planning to find a low end home outside of the city for $800k with a 20% down payment. As our down payment savings account piles up, I keep getting out of state partnership investment opportunities that chip away at my savings but have allowed me to grow some equity.
I‘m considering to shift gears and continue saving but instead really educate myself and take the plunge to get my feet wet with long distance BRRRR.
Just wanted to get some opinions on whether I should be focusing on buying a home to stop renting or keep renting to maintain a lower monthly cash outflow but focus all efforts and capital on finding and investing in affordable market cash flow properties.
Thanks.
1. Invest always....
2. Primary residence is a liability...
3. buy more rentals and use the cash flow to offset the cost of your mortgage...or just rent until you find a lower end home for 799k
4. Move to Iowa and buy the same house for 199k...
#5 All Forums Contributor
- Plymouth, MI
Originally posted by @Kevin Martin:
1. Invest always....
2. Primary residence is a liability...
3. buy more rentals and use the cash flow to offset the cost of your mortgage...or just rent until you find a lower end home for 799k
4. Move to Iowa and buy the same house for 199k...
Perfect answer.
@Kevin Martin hahaha thanks I’ll take a look at life in Iowa. I was leaning toward this approach and it’s helpful, just to hear different perspectives.
I'd buy a primary residence for your family and house hack to bigger houses. I also am a big fan of the FHA multi family lending options that will allow you to purchase a duplex for 3.5% down.
@Spencer Hoyt thanks man. But don't you need to qualify for those FHA loans, isn't there an income cap?