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Updated over 8 years ago,
Should I live in a cheap house while I try my hand at real estate
I am trying to decide if it is smarter to buy a cheaper house vs a more expensive one while I try to start real estate investing. The cheaper house will have a larger up front cost due to maintenance and renovations. My wife and I make about 160k a year. No debts. The cheaper house will carry a mortgage of 1800/month and the more expensive one is 2300/month. The house that's 2300 per month is newer, in a nicer neighborhood, and more spacious. It is a longer term house and we love the newer house.
Will spending more on this home bite me in the butt later when I try to get loans for investing? Should I choose the cheaper house while I spend a few years trying to start real estate investing.