Originally posted by @Shane Pawich :
So I don’t really think I want to own my own home just yet. But I really want to get involved in real estate . Can i hear some pros in cons about this situation? I don’t want to buy a rental home and then not be able to buy my own home for like 7 years. I would really rather wait and buy my own home in about 3 years. But will having rentals affect what i will be able to buy ?
I'd wait to buy for myself. I'd invest (wisely) in rentals and build cash flow and equity. Then, when the market corrects, and it eventually will, prices will be lower, you will have more money and it will be a great time to buy.
Places a person want to live are not always the best for investment property. Yet you are able to leverage much more of a purchase owner occupied. So pros and cons to going either way. You could also flip a number of properties at a profit or loss before your in a place where you want to live in something you purchased.
If your rental purchase fails to cash flow well, that is going to impact your debt ratios when applying for a mortgage, also your down payment on an investment property likely would leave you with less cash on hand for your home purchase.
If you can live with drywall dust and so forth, live in and flips are the most cost effective for a lot of folks. A lot of folks on this forum like 2-4 units, huge advantage of being able to live in one unit while you work on another. But than unless your flipping fast your living in the same building as your tenants, that becomes a much more emotional landlord experience, not for everyone.
Owning a home teaches you the basics of what goes into maintaining a property. Renting a home teaches you the basics of managing a property in a business sense. Both are valuable and will contribute to your success in R.E.
With that being said I recommend buying a home that you can both live in and rent out to start. You can keep an eye on the property, be there should an issue arise, and learn about dealing with tenants firsthand.
Hey @Shane Pawich ! You definately do not need to own a home first before getting into real estate investing.
I'd say overall, unless you have a job that produces tons of money and you have a hefty stock piling of cash, focus on areas that you can use to generate chunks of cash...either wholesaling or flipping. it will help you learn the market better, spot good deals, and who knows....maybe one of the great deals will strike your fancy enough to move into...all while you make chunks of cash in real estate.
When the time is right....then you can get into some multiunits.
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