Buying a house to live in, buying rental property...in what order?

[Patrick H.]

In terms of getting two loans, which is better:
1) Buying a house to live in first
2) Buying rental property first?

I would think buying rental property first is better. Once the rental property is purchased, the rent would cover the monthly loan payments.

When the lender evaluates the second loan (possibly a few months later), they would consider the rental income and it would be easier to qualify for the second loan.

[Scott J.]

There is also a third option, which is what I did. Buy a 2-4 unit property and live in one and rent the rest. I bought two houses on one lot and live in one.

It's been a great way to start off because you can keep an eye on the tenants as you learn the ropes. You also get the benefit of home ownership AND having a rental property.