I've been saving up a good amount of cash in the last few years and I'm thinking of buying a property.
I live over in LA where most houses are generally expensive. I'm tied to the area for business, so I'm not looking to move atm. I've been thinking about these two scenarios for how to use the saved up cash:
- I could go the traditional way by taking out a mortgage and placing 20% down. Then live in it/try to get some roommates to help 'house hack' it.
- Or I could take the cash and buy an income property in a different / less expensive city.
New to Real Estate · Orange County, CA · Member since 2020 · 214 posts · 184 votes
5y
In order to buy in another market, you need to have a team there. So if you go with that choice, you have to either go to a market where you have family / friends, or spend a lot of time doing research and building relationships there to find people that you can trust. I would recommend buying a house in your local market and rent it out room by room or the other side if it's a duplex. Even in an expensive market like LA you can still make money on a deal if you are willing to make sacrifices. Good luck!
Realtor · Austin, TX · Member since 2018 · 154 posts · 82 votes
5y
Yeah I would go for the house hack because it is always a great way to get your first investment property bought, and you would be able to cut down your living expense which would help you save more for your next property!