What Was/Is Your Strategy For Your Personal Home?

1 Reply

Hey Everyone,

Hopefully this question is in the right spot. My partner and I are currently renters, we are about half way to our goal of being able to provide a down payment of 5% and closing costs on our first property. Hopefully we can find conventional, but I'll save that for another conversation. Now I wouldn't be here if we weren't planning to purchase an investment property right out of the gate, we are considering finding a multi-family home and doing the house hacking method, unless I find a better strategy along the way. What I have been thinking about a lot lately though is transitioning from living in one of our rental properties in to our actual home. Now, I am probably overthinking this, as I tend to do, but I am wondering if any of you have used a specific strategy to add your personal home in to the process of trying to build your portfolio. The idea of purchasing a property that generates no cash flow is a tough pill to swallow, necessary, but tough.

My initial though was to just stay in the first multi family property until we have 4 or 5 properties generating cashflow and just bite the bullet, but we also have our own family to consider and our kids aren't getting any younger. My goal would be to try and make the transition as soon as possible, but with as little interruption to our potential business as possible. I'm not saying we aren't willing to stay in our first property for as long as we have to, but I am just wondering if there are any, more creative solutions to transitioning. I guess I'm not sure if there is a good strategy for this, but I figured why not reach out and see if any of you have any advice to offer.

Thank you!


Hey Josh,

I do not know all of the answers but here are some suggestions:

1) Buy another multi-family with a low down payment and live in it with your family for another year. I do not have kids, but I also know its not the end of the world to live in a multi family with a family. If they are young, they do not know what is going on, they just want to have fun, so what's the difference? Too many people emphasize having a home. There is a whole world out there to explore, the house is just a place to rest your head.

2) Buy a SFR with space for value add. Maybe find a foreclosure or some other property that requires rehab so you can build equity quickly and possibly turn a profit that you can invest into your business.

I understand you want that SFR but think of the benefits of house hacking and how that can accelerate your savings rate and investing over the next few years. If your kids grow up part of their life in a multifamily, again, its not the end of the world. You are doing it to make a better life for you and your family. Wouldn't it be nice for your MFR to pay for your SFR and not have to pay a mortgage?

That's just my 2 cents. Personally, I owned a SFR in the past, sold it, and now house hack. I could never see myself paying a mortgage again for the rest of my life.

Either way, good luck and do what will bring you and your family happiness!