First Investment - Non-primary res.

[Jeremy Smith]

I am wondering if there is a better approach to my first investment property that will not be a primary residence? My wife and I along with our two children are pretty rooted in our current community and love it there, but are very interested in REI. The most successful stories I am hearing about starting out involve house hack or financial benefits from primary residence factor. Is there a better approach for initial REI without the property being the primary residence?

[Damaso Bautista]

@Jeremy Smith

The thing you need to do is figure out what you can buy with what you have and what you qualify for.

Find out how much actual liquid cash you have and how much of a mortgage you qualify for in addition to your primary mortgage.  Once you do this you will have a better picture of what you are looking at.  

After this I would run the numbers based on a pure investor level. 

25% down

Liquid in the bank ( closing costs, repairs to make rent ready, and 3 months reserves)

If you have this all lined up then the process if very straight forward and easy, you find a place that meets your criteria, you buy it, make it rent ready, find a renter and then rent it out. 

If you have any questions feel free to ask them and I will try to answer them.