My First property!

[Archie Seals]

Hello BP nation! I've been working diligently all year to clean up bad credit and I've finally been approved for a loan. Not sure if I'm using the correct strategical term, but I planned to "house hack" a duplex for my first investment property using a 203k loan. I have a full time rat race to attend so my intentions were to save for my next investment while my tenant from section 8 pays my mortgage (200k-225k 30yr) at roughly $1200 a month for 1 year. I know that I have to live there for 1 year but I guess my question is do I double down on the mortgage once I'm removed or do I take the cashflow from the second tenant to purchase more investments? (If this is a logical strategy and possible, please feel free to offer your advise, is this a dream strategy? )

[Peter MacKercher]

@Archie Seals House hacking is indeed the right term. I'm a bit confused though -- are you planning on buying the second property in cash? If not, then you're most likely going to just get another mortgage for the new property rather than taking out a second on the first property, otherwise having the cash wouldn't do you much good. 

So, most likely, the second tenant's cash flow you can just apply towards the new mortgage payments, if you need to. Just keep in mind that your properties ideally cash flow enough that the incoming rents cover the building's mortgage payment and other operating expenses, which means you shouldn't be leaning one building's financial stability on another's.