Investing s while still renting ?

Question

Hey guys so..

I have been planning to get into real estate for a long while now and will pull the trigger by august. As august I will have funds required.

I currently rent here in SoCal . Very very expensive City to buy in and my plan was to get into real estate investing while continuing to rent here in So cal and purchase out of state property.

Many people that here my Plan tell me that I should buy my first property for myself first then look outward. But I want to continue to rent while buying my first property to use as passive income.

What do you think?

Account Closed · Answer

I did that exact same thing! I’m a renter but started with out-of-state investment properties. If i need to in the future, i plan to pull out equity as a down payment. Feel free to DM me if you’d like to chat more!

John Leake · Answer

If I could go back I would have purchased a house hack as my first property. In the area you live in, it being expensive it may make more sense to keep renting and buy out of state like you are thinking. It will honestly come down to the deal and thinking of it from that perspective may make the most sense. Look for a deal both in your area as well as in whatever out of state market you are considering. I would then go with whatever deal makes will work best for you. Some additional challenges with out of state is you will be more limited on what you can do on your own vs hiring out. It can be a huge benefit starting out to be able to get some sweat equity in your deal. Best of luck!!

Joshua Janus · Answer

@Jeffery Cooper Is a house hack a goal of yours in the future? Study the requirements for an FHA loan like a book and make sure to set yourself up for success. Examples would be building up your credit, getting the most recent tax returns for the last 2 years in the same field, building up capital for the down payment, closing costs and 6 months in reserves so you can use as much of the rental income from the other units as your own income when you getting qualified. These are some barriers I had to make sure to be able to climb over.  Let me know what questions you have.

Samuel Albert · Answer

If you rent a unit with 2 or more bedrooms and you only use one, you might see if your landlord would let you arbitrage the other room as an airbnb. If you present it to him as a positive he might take you up on it. Tell him that he will still be getting his monthly rent, and his property will be well maintained so it will be an attractive listing on Airbnb. This way you might be able to do a kind of house hack that doesnt require you to own the property. Later when you get the funds you can look to purchase a unit for yourself and house hack that, or just put a tenant in there. Just thinking outside the box because you said you wanted to continue renting.

Good luck!

Investing s while still renting ?

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