Updated over 3 years ago on . Most recent reply
Purchasing a rental property as your first home?
First time home buyer here! Is it a good idea to buy a property you intend on renting out BEFORE buying a primary residence for yourself? In this situation, I would continue to rent the townhome I’m living in and hope to make some income from owning a separate rental property.
Has anyone done it this way?
Thank you in advance for your thoughts and advice!!
Most Popular Reply
I rent where I live now and only buy rental properties. My first home was one I bought for myself, but I did that when I naively thought owning your own home was the best investment. Later after I got into real estate I learned otherwise (much to my dad and grandpa's annoyance because they had tried to convince me getting my own house wasn't an investment and I was too stubborn to listen at the time), and when I took a job transfer I rented out that house, and only bought rentals from there on out.
There are some situations where buying your own home can work, but I'd argue it's not the majority of them. One consideration is how much you'll have to pay in rent versus what your expenses to own would be. But the short answer to your question is- YES, and it can be a great idea to buy rentals before a primary!
There are some situations where buying your own home can work, but I'd argue it's not the majority of them. One consideration is how much you'll have to pay in rent versus what your expenses to own would be. But the short answer to your question is- YES, and it can be a great idea to buy rentals before a primary!