Should I buy my first residence or rental property?

Question

Hello everyone, I’m looking to purchase my first rental property. I’m greener than the grass on the other side at this point, but I am eager to learn the real estate business. I came across a great deal (at least that I know of) from a gentleman that is willing to help me out on selling me two properties. In the market I am in rentals are very sought after. What lenders should I look at when just starting out? What do I look for in a lender? Any help would be GREATLY appreciated!

Thomas S. · Answer

Find yourself a mortgage broker to shop the market for your for financing.

As far as which to purchase first, home or rental, it depends on what your priority in life is. A personal home is a life style choice not a investment.

Due to the fact that a personal home is more expensive to own and maintain renting while saving to invest is a smarter option for those wishing to concentrate on investing. When you have more income than you need and own all th eincome properties you desire you can then consider buying a home.

Patrick M. · Answer

If you are buying from someone who is helping you out than see if he will carry the notes. It may be more advantageous for him and if they are solid assets he may have no problem with it.

If you can get him to carry the notes at a reasonable rate then I say jump on the investments 1st.

Jim Goebel · Answer

Get your primary thing figured out.

Consider house hacking if your life / family constraints allow.  Google or BP search to learn more.  Good luck.

Nothing specific about lenders other than try a few.  Don't be concerned about getting rejected - it happens.  Credit unions I've found to be easier for primary and HELOC lending for whatever reason.  Quicker close, lower closing costs, and better rates.... Not sure why.

Mark Ronquillo · Answer

Thank you all for the responses! In the city I live in rent literally is $900 a month for a TRAVEL TRAILER! Yes not a mobile home (those rent for $1,500 a month) but literally a small one person max livable space. My income dramatically jumped 3X from my last job. A 2bed 1bath house rents for 1600-2000 a month. You cannot find a house for less than $150,000 sale price. Unless it needs major repairs. My mother inlaw owns a few properties and she lives off of them with no worries in the world. I’m currently renting from her for only $500 a month while we save for a down payment. She’s encouraging us buying rentals before our primary simply because she’s struggled to be where she is now. I want to invest while I can before my wife and I start having children. It’s a steep goal but I’d love to be financially independent by age 30. I just over think life in general and would love to have advice from others with experience and see what they would do in my current situation. Thanks again!

Should I buy my first residence or rental property?

Most Popular Reply