I rent but want to buy to rent to others

[Primal Patel]

Hi All, 

I live in Chicago, IL and I am currently renting an apartment with an 18-month lease. After signing my lease I stumbled upon the book "How to Invest in Real Estate for beginners." This inspired me that other people have created wealth and freedom. 

I currently have $20k for a down payment for a property and I was thinking of purchasing a single/multi-family property for less than $300k and put 3-5% on a conventional loan. My goal is to purchase this property and have it cash flow to help assist with the rent and possibly have a home for my partner and me after the 18-month lease. 

Have other people been in a situation where they rent but purchase a multi/single-family home and use the income to pay off other debts (ie. student loans)?

[Theresa Harris]

If you put 3-5% down, you will need to live in the property-you can't use it solely as a rental.  Lots of people who live in expensive markets find it cheaper to rent the house they live in and buy a rental in a less expensive market.