buying rental property while renting

[Sergio W.]

Hello everyone, I'm new here and I'm VERY anxious to begin my investing journey. I've been researching REI for over 2 years now and I'm ready to dive in. The problem is I don't really have much cash to play with. I'm currently leasing an apartment and I'm always looking at the cost of properties in my area and the prices are ridiculously low becasue of the housing market right now. I want to cash in on these wonderful opportunities while the prices are so low, but like I said I don't have much capital to work with.

My question I guess is is it unheard of for one to obtain an investment property mortgage for an investment/rental property while renting themselves? I know it may seem like an odd question, but I have looked all over this site and the web and I can't seem to find much info on this particular situation.

[Sergio W.]

I definitely appreciate everyone's input, all of you have been a great help. Tinarel, I don't think it's silly at all that you will continue to rent until your cash flow from properties is enough to pay your mortgage. I actually think that is a great idea and may be what I do as well because currently I live in a great luxury apartment at a great price and I couldn't imagine downgrading my living conditions to pay on a mortgage that is more than my rent.

Charles, I will have to disagree with you on the conclusions you came up with. I have no problem with commitment nor do I have a lack of desire. My problem as I mentioned is that I don't have much cash to play with. I don't feel there is anything wrong with me researching for 2 years before I make a move. This wait is mainly because I haven't saved up enough money for my first property not to mention that I am only 23 yrs old so my credit scores aren't where I would like them to be to obtain the best rates, a full time student paying my own tuition and work a full-time job to support my girlfriend and I. I don't make the most money currently so it is rather difficulty to save up a down payment for an investment mortgage (30% down is average in my area according to my local mortgage broker). I go after everything I want in life and I achieve all my goals but I take precaution because I'm not only supporting myself so I have to evaluate my risks carefully.