First Purchase: Investment Property vs Primary Residence vs Both

[Shane Cummings]

Good Morning, BP!

I have been saving these past few months and my original plan was to put 20% down on my primary residence (which would be my first home purchase) somewhere in South Florida. And then be done with it.

However, I have recently started to entertain the idea of making my first home purchase an investment property. This way I can start earning some cash flow immediately!

Of course I still need somewhere to live as my primary residence, but I may be able to put a lower amount down (5% or so) and pay PMI. Use some of the cash flow from the investment property to help cover the PMI.

One idea recommended to me was to do both! I'm assuming I would first have to purchase my primary residence to qualify for a FHA loan. Next, I could use the remainder of my savings to put 20% down on an investment property.

Do you think it will be tough for lenders to approve TWO mortgages back to back?

Any other recommendations?

Thank you!

[Share Ross]

Hey @Shane Cummings have you considered house hacking? Buy a duplex or triplex if possible and live in one side and rent out the other! It's a win/win. Especially for a first purchase! 

Depending on the area you're looking in, this is VERY doable and one of the wisest ways to make the leap!