Updated over 6 years ago on . Most recent reply
Buy and Hold OR House Hack?
Help!
Basic info: I’m married with a 5 year old. I hate my job. I have a 2.5 hour workday commute. I live in a great neighborhood with excellent schools. I just fixed my credit and have developed a much better relationship with managing money. I want to be financially free. That means, I don’t have to work 40 hrs per week and drive 10 hrs per week to make enough money eat and pay bills.
Question: Which would you do?
Option A: Buy a multi family in Chicago in an up-and-coming neighborhood?
The problem: I do not have 25% for a 203k loan that I would need to purchase and rehab the property. I do not want to move into the building because I have a family with a young child and the schools are below my standards.
Option B: Buy a townhouse that needs some TLC in my area, live there, update it, then either sell it or make it a rental.
The problem: The only problem is that I would have to wait until my lease is up so I don’t get sued, which isn’t actually a problem at all.
Option C: Get investors for A, and do B.
The problem: The only investors that I can get are family and friends.