Boynton Beach, FL · Member since 2019 · 2 posts · 0 votes
Hello BP,
I want to thank everyone in advance for their feedback and guidance.
Here is my situation. I currently own a town house in South Florida and I have saved enough money to buy my first rental property. I'm not sure if I should sell my current home or rent it. I looked into a refi to lower mortgage payments to get higher ROI but the numbers still don't make sense. If I sold my home it I would make about 40k and I can use profit plus cash on hand to buy a MFH here in South Florida. I feel a MFH will have better ROI than my current town house and it would be great for long term passive income.
On the other hand ,
If I don't sell and keep the property to live in would you recommend buying out of state where maybe I can buy a house for less than 100k cash and ROI numbers makes sense ?
Im not sure which way to move and if keeping my first home even makes sense. Please help this rookie !
While investing OOS is certainly doable for a first-time investor, I think most veterans on here would recommend starting in a market you already know. Plus, house hacking is a fantastic way to get started with relatively little capital (potential for higher ROI). The answer here really depends on whether or not investing in your current market makes sense based on your investment criteria. If it does, stick with what you know as it will make the arduous process of starting out much simpler. Then, once you have your systems down, you can take those and implement them in other markets.
Hope this helps a bit and please feel free to message me anytime if you have other questions or just want to chat!