Potential Real Estate Investing after marriage

5 Replies

My fiance and I are getting married next year. She currently has a house and I live in my apartment. I currently have enough money for a down payment for a home but I am debating on a few things to do with this money. I am 30 and she is 32. We both have stable jobs and would be able relocate more than a 30-45 drive where we currently live.

Scenario #1

-I buy a house with a FHA loan prior to marriage. My fiance moves in with me after marriage and we rent her house (nice family neighbor. We currently have renters next door). We stay there for 2 years and then buy our more stable house to live and start off with 2 SFH for investing. (Hoping to get a mult family instead with the FHA loan)

Scenario #2

- My Fiance and I move into a nice apartment, she rents her current home and I use my down payment money and buy another home to rent. We proceed to live in the apartment and buy another property in a year. Then save up for 2 more years to buy a down payment on our dream home.

Scenario #3

-I move in with my Fiance after marriage. We combine my current down payment money and save up more for our dream home for 1-1.5 years. We then rent the current home and save up to buy another rental property.

I wouldn't desire to have a truly stable home until future children reach Pre-K. (5 years from now at least)

Real Estate financing is all dependent, ultimately, on your assets as collateral. When you rent, you do not have an asset. I like option 1, because you have assets. You can do more with these. Unless in #2, you are just rolling in cash to allow you to buy with cash. What is your goal in real estate? How much do you need to have to get to the "dream house"? Determine your goal(s) first, then choose your scenario. You cannot chose a wrong one, as we are always learning in real estate. Best of luck to you! 

Remaining  renting yourself is the most economical method to save for future investing.  As to whether renting your fiancées house or not is dependant only on the numbers. Present value, equity, market rent, expenses etc.

Most SFH home do not make for good rental property investments.

I would sell her home and house hack a multi in your situation. Wash, rinse, repeat.

Originally posted by @Jack Bobeck :

Real Estate financing is all dependent, ultimately, on your assets as collateral. When you rent, you do not have an asset. I like option 1, because you have assets. You can do more with these. Unless in #2, you are just rolling in cash to allow you to buy with cash. What is your goal in real estate? How much do you need to have to get to the "dream house"? Determine your goal(s) first, then choose your scenario. You cannot chose a wrong one, as we are always learning in real estate. Best of luck to you! 

Thanks for the post Jack. My first goal is to get enough units/cash flow so my fiancee can eventually leave her job after that is done we will see where it takes us. I am liking #1 because it won't be a dramatic shift for her going from a 3/2 SFH for 4 years to a smaller 2/2 MFH, Dream house would be more so in the 450-500k range.

For #2- I do have a decent paying job that if when lived together we can save to get at least in a year 10-15% of a down payment for most SFH in our area. Maybe 20% if she gets good commission checks that year. MFH would be so in the 10% range in the areas I would like to invest in.

Originally posted by @Thomas S. :

Remaining  renting yourself is the most economical method to save for future investing.  As to whether renting your fiancées house or not is dependant only on the numbers. Present value, equity, market rent, expenses etc.

Most SFH home do not make for good rental property investments.

I would sell her home and house hack a multi in your situation. Wash, rinse, repeat.

Her hourse

Mortgage: 160k left

Value: 235k (based on lowest evaluation I can find) Highest: 250k

Market rent: $1,450 (worse case)

You are correct cash flow would not be high more so $100/month after expenses

Eventually we would attempt to use this house in a 1031 exchange to get a MFH

@Maurice B. , All good plans!  One bit of food for thought.  If your fiance has lived in that property for 2 years then the first $250K of profit would be tax free upon sale.  That's nothing to sneeze at and I'd highly recommend getting that money out and contemplating for a bit.  

Your plan to purchase nice multi to house hack is splendid. And if you can qualify on your own with an FHA then so much the better. Use it now. Buy it. Move her in and sell hers. Evaluate the market for the next purchase (maybe use some of those tax free dollars to buy another multi or two).

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.