Can a renter be an investor?

[Kyara S.]

I’m currently renting and do not own. I’m also setup to be able to purchase a rental property and start making money. What are the pros and cons of not owning my own home? Why is it suggested that I own before I invest?

[Thomas S.]

The pro's of being a renter/investor is that it is the lease expensive cost to live allowing maximum savings ability. Home ownership is far more expensive. Being a renter also allows you the option to live in one of the units if you purchase a multi unit property. This will allow you to invest a small amount of money as a DP and possibly get a lower interest rate. This is a wash, rinse, repeat process (BRRR) that is very attractive to investors that are not tied down by personal home ownership. Not owning a home also keeps your debt lower.

The con's of being a renter investor are... ? I can't think of any.