Buying Rental Properties Before Your Own Home

[Carlos Lopes]

I’ve been struggling with the idea of buying a rental without my own home to live in. 

Back story. I own a rental in FL (first home we lived in), but moved to California 3 years ago. Decided to keep the FL SFH home as a rental, and I'm glad we did. The SFH currently nets about $1000/month after all expenses. Fast forward to today, we're looking to buy our own home again in Southern California, while at the same time, I'd like to keep increasing my portfolio in that same FL town our current rental is in.

I've found what seems like good deals in FL, deals I know would be profitable in the long run. Simultaneously in California for our own home search, that's been a bit tougher, especially for a price I'm willing to pay. Also should mention I have VA loans as an option.

All this said, I’d like to hear some people’s thoughts. Keep increasing rental portfolio at the risk of potentially hurting my ability to receive a loan for my own home in CA if I find a killer deal in the near future? Is finding good cash flow deals better than an asset that’s not generating any, even though it’s your own home? Thanks in advance! 

[Jeff S.]

@Carlos Lopes there is no right or wrong answer here. People have done very well doing it both ways.

I might suggest there is no such thing as a killer deal. 

You have to create a business model that works not just for your wealth but also for your families welfare.