Advice for Beginner Investing
Hi all!
My husband and I are in our early 20s and we want to buy a house, however we are trying to decide if it would be better to buy a rental property. We are okay house hacking if there is a separate kitchen and living place because we like having our own space. We want to be able to be financially independent by the time we are early 40s. What would you recommend for us to do? Should we use the 3% down payment on a rental or should we buy a house to live in to start off? Any advice would be super helpful! For reference we make about 85k combined pre tax!
Most Popular Reply
Welcome to the BP community.
I would strongly recommend to anyone in you position to look into "househacking" a duplex. This is a great way to build equity, especially if you can do some work on it. This works best if you move in to one side fix it up. when leases are up you can move the tenant or get a new one and renovate the other side. This way in a short time you will have a new renovated property, and be able to move on to your next.
I would recommend looking into the conventional owner occupied. this requires 5% down but you are able to drop the PMI once you increase equity to 20%. With FHA you would need to refinance.
You are doing the right things by starting early. The best time to plant a tree is yesterday.
Best of luck.