How much of a down payment should I put on my primary residence?
Hi everyone,
I'm a new investor and I am looking to buy a primary residence as well as a (separate) investment property. I have the money to put down a large down payment on my primary residence, or possibly buy it outright, but should I?
I have heard some RE gurus advise not to use debt to buy anything that does not create income (i.e. doodads). And my primary residence would fall into that category.
But if I put a little bit down and take out a loan for the rest, then I could take advantage of the low interest rate, first time homebuyer specials (like FHA loans), and that would leave me more money to invest with.
I really don't know how long I would stay in this home - it would be a starter home and I would likely move out in a few years, and maybe rent it out for income.
I would like to hear your thoughts and advice on this. Thanks in advance.
Mike