Is it weird to buy rental properties instead of primary residence
Hi all, I'm a new member here, I've been wanting to own rental properties for a while and finally, I pulled the trigger and now in the process of my first rental!! After I sign the contract, I feel like I'm getting closer to my goal of being financial independent.
Contrary to what most people do, I do not own a primary residence, I'm renting in the Bay Area, the houses here are super expensive and don't cash flow, I don't plan to buy anytime soon (or ever). Instead, my plan is to buy many rental properties out of state, in areas that cash flow. I have a day job here so I can accumulate wealth and keep buying more. If I keep buying more in the next few years to the point that total cash flow > (my expense + my rent in bay area), then that means I'm financially independent. And when I'm financially independent that means I can quit my day job, don't have to stay in the bay area, and can just pick one of my rental properties and live there. Or even travel around the world without a primary residence...
When I told my sister the plan, she thinks I'm crazy, out of my mind! because most people own a primary residence. like a lot of my friends in the Bay area, they put $200k down payment to buy a 1 Million house and pay the mortgage each month with almost all of their paycheck...... and they must be tied to a 9-to-5 job in order to pay mortgage, and at the same time, can't accumulate much wealth outside of their 1 Million house, the house also don't cash flow! they can share the house with other people to reduce bills, but that means the quality of life will suffer, and most of them already have a family and have kids, they don't want to share house with others..... and therefore I think owning an expensive primary residence doesn't make financial sense to me.
But back to what my sister says and what most people do, they think I'm crazy to take on mortgage to own out-of-state rental properties while I'm renting other people's house (paying other people's mortgage)
What do you think, biggerpockets? Am I out of my mind? Is my plan flawed? Am I missing some important concepts? I don't want to just own 1 rental, but many many so the income is greater than all my expense, am I too naive to think this way?? I need some inputs... thank you and I've really learned so much from all of you! :)