Primary residence

10 Replies

Hello BP community,

My wife and I are still searching and researching the area for a primary residence. We are new to the area and we'd much rather live in an investment for a few years and rent it out later. Any tips? We are thinking of scooping up a good wholesale purchase or a HUD discount. If you had to buy a home to live in, how would you do it in today's MN market?

-Sean 

@Sean Mcguire  look at average act scores for high school in area.

Then go to trulia and look at crime statistics.  I always start looking at discounted areas til i think about the hassle of my car or house broken into.

This how i would start if i was new to area.  Of course there is always the price thing too.

@Sean Mcguire  

I've heard that 3 bedrooms and 2 bath are the generally the easiest to sell or rent. I agree with @Kirk R.  In that safety is most important and also good schools are important. I would also look and google all the first time homebuyer government programs to see if you qualify for any. Some programs have where you can get a great interest rate or put very little money down and in some cases you can even get a grant for the down payment. 

@Sean Mcguire  buy something you will LIKE living in, and feel safe in the neighborhood.  Look for something that you can do some renovation on, and therefore be able to have first access to as an owner occupant, and make a little higher offer than you would as an investor locking for a certain return as a flip property.  That way, you are buying already at a discount, you put your down payment on top of that, and you are in a really good situation.  We did the same thing, and bought our house and have more than doubled it's value from purchase price to current appraised value in just 14 months later.  Doesn't have to be expensive .. just be smart.

@Sean Mcguire  

First welcome to BP.  It is a great site for netwroking and information.  For your primary residence .  @Nathan Brooks   and @Laura Williams  have some good tips above.   One tip that I picked up here is while you are starting out and saving money for your investments, start driving / visiting areas you would like to invest in so you get a feel for prices, rents , house conditions etc, and visit and look at lots of homes and open houses so your eye get used to looking at repairs / upgrades that are normal in a particular market. I really dont think you can look at too many properties, and the more you look, the more knowledge you will gain for that market.  

I have also done the primary into a rental several times in my mile (My job moves me arounf alot) so another tip is look at houses through the eyes of your target tenants. If you want families in your SFR, follow the tips of Laura above

ken

Welcome to Biggerpocket!

What's your goal for your primary. Is it a "true" primary or are you hoping it will be investment sooner than later.  We started out with no money as personal property right out of my undergraduate degree. We bought a fixer upper and than rented it when we were transferred. So we buy "personals" but they are future rentals. A portion of our strategy is turning these houses into rentals.

Definitely check out the blogs, podcast and forums. Another great source of information is individual blogs found in peoples signatures. Many of us including myself write about our niche. The only thing we all agree about is investing in Real Estate. Beyond that there are many different style and types of investing. My blog/website is about long distance self management, landlording, investing in class A investments, investing in a transient lifestyle, etc.

Look forward to seeing you around!

@Laura Williams  @Kirk R.  @Nathan Brooks  Elizabeth Colegrove thanks all of you for your kind advice and warm welcomes.  I appreciate the tips, and think we may just need to find a home first and an investment second.  

@Sean Mcguire  
Hi Sean.  My sister is in Savage MN.

Anyways - I like having people around and rent out rooms in my current residence.

@Kirk R.  Savage is a great little area.  It's much more ideal than Shakopee.  We are only here because the rent is cheaper.  We've yet to purchase in Minnesota.

Just have to make sure if i find a wife she likes renting out rooms in the house too.

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