Clever Minds Needed on First Purchae

[Nick Koegen]

Clever Minds of Bigger Pockets, My name is Nick and I am moving to Austin,TX soon from San Diego. I am out priced here in San Diego and I refuse to put down a 100k down payment on a house until it comes residually from all my rentals. I currently have 60k to put down on a house with an extra 13k for cushion; or if needed to buy down points or do a small Reno. 45k from my 401k, 15k from my grandpa, and 13k personal savings. This will be my family's first home purchase. I have tried to convince my wife into living in a duplex or triplex but she's afraid of living that close with strangers as we have two little ones. I've conceded and plan to buy a single family soon. So now that you know a little more about me, I would like to see if you have any clever ideas for me in regards to my down payment. I don't want to spend too much on a house. Maybe 200k or less which means in order to skip the mortgage insurance requirement I would need to put down 40k. So, is there anything I could do with that extra 20k? Would I even be able to split up my 401k loan on a rental? Is there anyone out there involved in a smaller scale investment group similar to the recent BP guest Joe Fairless? This is my first post so if I am missing any vital information (which I'm sure I am) or if I broke a cardinal rule of post length please let me know. Thank you for your time in reading this and any ideas you share with me.

[Cody L.]

I can't offer much advice based on your question or situation, but I wish you luck for what it's worth.

I'm also in San Diego (mission hills) and have actually been looking at Carlsbad as a place to buy another home (I now have kids as Carlsbad is as "suburb" as I can bend).

The homes, esp on the high end, are laughably overpriced. Like I'll see a $4m home that sold a year ago for $3m. I just can't do it.

So I also think we are due for a large correction. Esp on the high end. Till then I'll stay put.

But all my actual property investments are in Texas (houston). I looked in Austin. While I think austin may be a better place to live, I liked houston a bit more for investing. That said, you can start a real estate empire for yourself easier in Austin than San Diego so I'm sure you'll be fine.

Good luck dude!