Investing in real estate while renting?

Question

I'm currently renting an apartment, but would like to get into real estate. Is it better if I buy a house for myself first and then start investing, or maybe it doesn't really matter and I can start investing right away?

Damian Bialonczyk · Answer

@Adrian Wydmanski

Living in the Boston area I personally opt to rent and invest in the more-affordable markets outside of the city. Hypothetically, I could purchase a house/condo around Boston, but purchasing here is dramatically more expensive than renting in terms of monthly expense. I would rather put the net savings towards future investments rather than tying it up in my personal residence. Definitely depends on your market and rent vs. ownership costs!

Ed Emmons · Answer

It may depend on what you pay for rent in comparison to what it cost to own. Likely you could do a house hack and depending on your situation you may be able to rent a portion  of it while you live there to cover your mortgage. Eventually you would want that rent money that you are paying to someone else to go towards your assets.

Aaron K. · Answer

@Adrian Wydmanski depends on where you are living and how much you are paying in rent.  If you are in a well below market rent controlled apartment in San Francisco yeah it makes sense to invest elsewhere and continue to rent.  If you are paying $1,500 a month where you can buy a house for $75k then not so much.  More information is needed here.