Pros/cons of getting 1st rental via a 2nd mortgage

[Shaye Steele]

I have been sinking $ into renting a place the last 5 years in Tampa Bay, FL. Finally got promoted enough to look for my 1st primary residence. Considering taking a 2nd mortgage to do my 1st rental at the same time, but uncertain about biting off too much at once. The numbers look good as long as I can rely on my current income, & I’ve wanted to own a rental for some time. However, I don’t want to get too far underwater as a beginner with little to no RE investing experience, even tho I know experienced professionals & friends that I could lean on. Has anyone gotten a rental & residence at the same time, &

how did you fare? What issues did you run into that you weren’t expecting? Or issues you were able to avoid? Rent prices here are just as much as a mortgage, & home prices are quickly shutting out beginner middle class investors like myself. I’m also unmarried so I do not have the benefit of combined income. Not sure whether to take a risk on getting 2 properties (1 of which should pay for itself), or just start off with a primary residence only, until I gain more knowledge/experience & capital. All thoughts appreciated!!

[Michael Haynes]

Hello Shaye Steele, your post is kinda confusing. You intend to buy your first Home? Then, you want to refi and use that money to buy an Income producing Rental in Tampa?? And you are an Agent? You know how to do Searches for properties and you know how to plug in the numbers to see if that "insane" idea makes any sense. We are at the Top of the Market. Warren Buffett says to, "Buy when there is Blood in the Streets." Do you know the Tax Laws? Your safest bet at this time is to find a fixer upper, in a neighborhood that you want to live in, and stay there for two out of five years to make it the Tax-free Sale of your Residence and just do it again the rest of your life. Your still single! Real Estate Investing is just like the Stock Market. It's a "Pump and Dump" Business Cycle. I trade ES Futures for my Daily Cash Flow. I made $1070 yesterday. I just sold my last Rental House in Tampa after 30 years of renting and I do not want to get back into that business to do six months work with an old house or duplex, to make, maybe, $100 per door. You cannot count on longterm Appreciation as your only means of Profit. Cash right now is Trash, but, Cash will be King in the next downturn, which has begun with the idiots in the White House. Wake up! Take your Time. Do not overextend yourself. Work up your Agents license and get a Broker license and network your way to the top.