Seeking Feedback on Investment Property Strategy

[Varun Khatri]

Hello Investors and Real Estate Experts,

I hope this message finds you well. I'm reaching out to gather some insights and feedback on a strategy I'm considering for my first investment property. The current market conditions have made properties quite expensive, potentially leading to a scenario where I'd have to cover monthly expenses out of pocket. To mitigate this, I've devised a plan that involves leveraging my primary residence.

I've been residing in my current home for the past five years, which I secured at a very favorable interest rate. It's capable of generating approximately $200 per month in positive cash flow if rented out. Concurrently, I'm contemplating purchasing a more expensive property similar to my current residence, which I would then inhabit for around two years. Following this period, if interest rates decrease, I intend to refinance the property, transition it into a rental, and repeat the process by acquiring another property to serve as my primary residence.

I'm curious if anyone has attempted a similar strategy and, if so, what pitfalls or challenges they encountered along the way. Any insights or advice you could offer would be immensely appreciated.

Thank you in advance for your time and expertise.