Atlanata, GA · Member since 2018 · 3 posts · 1 vote
So I'm looking into investing in real estate. Rental properties to be specific. However I am not a home owner, because I live/work overseas.
I have be researching on my own and some people say it is better to buy your own home first before looking at rental properties. Is this necessarily true? I won't be moving back to the states for at least another 4-5 years. I was thinking I could buy a few rental properties, then refinance them and collect on the equity using that cash the finance my actual home of residence. Does my idea seem plausible? Or is there a better way to go about this?
I see no reason you would need to own your own home before purchasing a rental, especially in your situation. I don’t even see the logic in it. Purchase away! I would not suggest pulling the equity out of them to purchase your residence either. I don’t like stripping equity. Just put the 3.5% down and use a regular mortgage on your residence. Why would you want to pay cash for it? Your interest rate will be lower on your personal residence than your rentals, and you can borrow at a deeper rate.
If I were you I would consider buying a small multi-unit rather than single families. That way if you decide you don’t like the market or don’t like investing, it will be easier to liquidate.