Advice/ Feedback Wanted

10 Replies | El Paso, Texas

Hey BP Family,

This is one of my first posts, but first for a long time. I've been interested in investing for a long time, and have read a couple books but haven't yet taken the plunge of actually purchasing a property. I currently have a full time job (50-58 hrs/ wk). I make a good salary for my age and plan on staying there fulltime, at least in the short term. So I'm wondering if anyone has experience/ advice about working a full time job while also investing in RE..? I'm paying rent in an apartment now, so I plan on owner occupying whichever property I purchase. Right now, I'm torn between a 3/2.5 2300sqft townhouse without any HOAs, or a 1600sqft 3/2.5 SFH that needs a little cosmetic work. Both properties are in B-B+ neighborhoods. I'd live in the property for around a year, allowing me to put only 3.5% down. I would make a goal to have saved at lease a 20% down payment on my next property to rent out completely. Does anyone have any advice for me? Is this a good strategy for someone that's still learning, but would like to get started with a home to live in? Any guidance would be greatly appreciated!

Knowing what I know now ... and if I were you ... I would buy a multi-family. Live in one side and rent out the other(s). Basically you can live rent/mortgage free (plus some) and save tons of money every month to go towards your next investment in a year or so. 

If you are planning to buy in El Paso (I'm assuming so) make sure you pay close attention to the taxes. They are super high here in comparison to lots of other places. 

Just my two cents.

Promotion
Innago
Property Management Software
Manage Your Rentals Better For Free. Save Time & Money.
Easily Collect Rent, Screen Tenants, Sign Leases, List Properties, Manage Work Orders, & Much More!
100% Free Try It Now

@Steven Schuster , Are you single? I only ask because that may make a big difference in whether you take the GREAT advice that Laci just gave you (I'd do EXACTLY the same if I could rewind 15 years) or if you go with a single family because maybe the wife and/or kiddo dynamic doesn't fit as well with a multi-family. IF you're single or if your family dynamic supports it, definitely buy a 2-4 unit property and house hack for a while. It's a force multiplier for building capital reserves to really get started on the right foot.

If you wait three years for the next purchase you can qualify for the 3.5% down again. But you may give up a lot of opportunity in those three years. On the other hand you can actually buy as owner occupied next year and rent out this one.

Multi is definitely the best way to start, that way you can keep a close eye on the rentals while you learn.