Invest in first rental or buy a primary residence first?

Question

Hi BP community,

Would you advise I own a primary resident before I get into real estate investing?

I would eventually like to get into the LTR space and build a strong real estate portfolio. My family and I are currently renting and do not own any real estate. Would you think it's best to hold off on REI while we save to buy our primary home?

I am eager to dive in REI but want to make the best choice for my family and not bite off more than I can chew at once.

Any guidance would be appreciated.

Thanks,

Ryan

Ryan Hourigan · Answer

Your insight was very encouraging and helpful. Thanks for your time, D'Andre.

Ryan Hourigan · Answer

Thank you, Julien!

Ryan Hourigan · Answer

Thank you, Steve - that is a great idea. I will look for this as a possibility in my house hunt.

Ryan Hourigan · Answer

Hi Bill - yes I would be open to that, I will look into this. Thanks for your insight.

Stephanie Walker · Answer

I always recommend getting a primary first then turning that primary into your first rental property after your first year of owning it and living in it. Rinse and repeat!

Bill B. · Answer

Do either of you have any local friends, family or co-workers that you could tolerate living with you? Charging them 1/2 of whatever they’re paying to live solo. They save enough to buy a new car or start saving themselves. You pick up more than enough to cover some daily expenses like the utilities.

The added cost of buying a slightly bigger place will be almost nothing so you won’t lose any personal space. Even better if you find two.

Steve Vaughan · Answer

@Ryan Hourigan my family and I did a combination and bought a primary with a rental attached in 2007.

Not a typical duplex, but a mother in law (MIL) suite.  Technically,  it's 'luxury househacking'.  Could have an ADU, Casita, Carriage House, etc.

Or a regular house where you rent out the basement and it has its own entrance.   Try and combine👍

Ryan Hourigan · Answer

Thanks for the advice, Stephanie!

D’Andre Ortiz · Answer

Hey Ryan, I think that every situation is of course going to be different and depend on a lot of things in your life. I am personally of the stance of getting into real estate when you can is the best option. You never know what life events that could pop up and make it much more difficult to buy a home. If you go by the standard that most real estate appreciate 4% yoy then I think it is always a great way to start. Also the best way to get experience in this game is to do just start it! I hope this helps!

Eric Gerakos · Answer

I don't reccomend buying a "resident." They are more trouble than they're worth........

Invest in first rental or buy a primary residence first?

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