Richardson, TX · Member since 2014 · 35 posts · 4 votes
My wife and I are buying our first house in mid 2017. This house is going to start out as a way for us get out of renting and start building equity. With that being said, I have always imagined our first house being a starter home and eventually using it as a rental property when we decide to buy our "forever home".
Now, that is what I have pictured, but I would like to know how realistic it is. Given the information below, are there any other/better strategies I should look into to be able to get into a home as well as eventually turning it into a rental property?
Looking to buy around Richardson, Garland, Wylie, Rowlett, Plano, etc..
Mortgage Credit Score: 750+
Will have approximately $17K saved up by July 2017
Investor · Boyd, TX · Member since 2014 · 688 posts · 467 votes
9y
Personally if I was starting out I would get a 2 to 4-plex and live in one. The other option that I might do would be to do yearly moves to new places after the 6-12 month owner occupant requirement is satisfied.
Rental Property Investor · Orlando, FL · Member since 2016 · 463 posts · 220 votes
9y
Second what Paul says above. If you are renting an apartment now, chances are you won't mind living right next door to others when you buy. Look for a 2- to 4-unit property, where you can occupy one unit and tenants will help pay your mortgage. As an owner-occupant, you get to put less down (3.5% FHA, 5% conventional), so your $17K will go further. If you get a great deal, you can even cash-flow a little. Save what you would be spending on rent for the next down payment. If you are up to it, after a year, you could have enough saved up to buy another owner-occupant small multi property with low down payment and move there (TIP: Keep furniture and STUFF to a minimum. You'll save a bunch of money by not buying stuff, and it'll make moves easier on your bodies, minds and marriage). Good luck!