Is it realistic to purchase while still renting?

Question

My lease won’t be up until next July.

I really don’t want to wait that long to start investing into rental properties.

Is it feasible to purchase now despite still renting?

Jody Sperling · Answer

More real estate investors than you know rent while buying real estate. The house you live in isn't an asset unless you house hack (rent the rooms, units you're not living in). Renting your personal dwelling while owning and renting other houses, duplexes or apartments is a reasonable approach, and...

Perhaps patience is a decent idea for you in this situation, because you may come out way further ahead if you wait to buy until July. If you are willing to house hack, that one choice will put you so far ahead of most investors acquiring their first property, you can hardly quantify it.

Plus, the election may well have an enormous impact on real estate prices. Also, you could use this moment to set up an investment account that would position you to build cash reserves even when you buy real estate in the future.

Consider researching infinite banking. Cy Kueffer has some great videos on the concept. You'll love Wealth Nation's videos. Nelson Nash is credited with inventing infinite banking. If you have the savings to buy right now, setting up a bank on yourself could accelerate your investment journey by double or triple.

Best of luck to you, however you go forward!

Lien Vuong · Answer

If you have the funds thats very acceptable. For owner occupied properties you'll need to move in within 60 days of closing to meet their occupancy requirement.

Ian Whiteman · Answer

Dasia it can be a great tool. About 6 years ago I was able to rent a townhouse in Ft. Lauderdale for $1350 a month. For the area, it is well below the market. It isn't very nice but it was a great deal. 6 years later I am still there and although I don't love it it has served me well. I'm currently under contract for 2 more properties which, if all goes well, will give me 11 doors total.

People will ask a lot of questions and think it doesn't make sense but in the right situation, it makes perfect sense. Good luck!

Theresa Harris · Answer

Some people live in areas where it is cheaper to rent than pay a mortgage due to the high house prices. There is nothing wrong with buying a rental while you rent another place.

Dasia Washington · Answer

Thank you for this. Its extremely helpful and I appreciate you taking the time to respond.

Is it realistic to purchase while still renting?

Is it realistic to purchase while still renting?

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