Investment property or primary residence??

[David Rutledge]

Hi Everyone,

I am really struggling with my next investment step and I was hoping to get some insight and opinion from other investors.

I live in CA. already have a total of 3 investment properties all cash flowing quite well. two in other US states and one in Australia. I want to make another purchase this summer and I am trying to decide whether to put my cash in another investment property in another state of a purchase price of about 80K that will cash flow or put a 3.5% down payment on a FHA loan and buy a primary residence here in OC that will cost me money but will probably be worth more in the long run.

I like the idea of immediate cash flow but hate that my capital is not going too far when I have to put 25% down. On the other hand I love that I can put 3.5% down and get into a much more valuable home that will be worth more in the long run but I will be losing money every month with my mortgage payments being so high. 

I really am at a loss and would love to get some opinions from others to help me work through the decision.

Any input would be welcomed.

David