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Updated almost 2 years ago,
Buying a personal residence and then renting it out (and buying another personal)
I’m curious to get thoughts on the following:
For context, I live in Houston TX.
I’m new to real estate (investments or personal residence), and I am considering buying a personal residence (single family home) and living in it for 2 years before moving out and turning it into a long term rental (I know for a fact I will only be in the house for 2 years before moving somewhere else). My plan is to put 10% down on the house when I buy it, hence why I would be hesitant to sell the house when I move out and into another property (as to not be upside down) and would rather rent it out. Plus, I would like to get started in real estate investing and feel like this would be a great way to get started. I also plan on hiring a property manager for the rental property when I start to rent it out (I have researched multiple PMs). I plan on keeping the rental property as an investment for a long time.
Does this sound like an OK plan? I would be saving up another 10-20% for the second house that I would buy and move into in 2 years, so it's not like I would need the equity from the first house in order to buy the 2nd. Also, how hard would it be to put the first house into an LLC when I start renting it out? Thanks for your thoughts and advice.