Purchasing an investment property while renting an apt?

[Carlos Zappatos]

I currently rent and have never owned. I make very good money and have always wanted to put my money to work in real estate - single family homes and duplexes specifically. I have recently come across a single family home that I personally do not want to live in, but I think would be a fantastic investment property. I am considering a buy and hold strategy for this property, as I probably will for any investment in the foreseeable future. I would love to own my own home one day but feel now is not the time. However, I want to put my money to work and get started investing. What are some things I need to consider while currently renting? Is it extremely uncommon to rent/live in an apartment while owning a buy and hold property? I have also considered purchasing a duplex and living/renting one side, but for now, a single family home has caught my attention and I want to make sure if the numbers work, is there anything wrong with investing while currently living in an apt? 

[Jim Goebel]

@Thomas S.

I'd caution to not broad brush certain things. I'd bet our SFH returns beat your MF ones. I'm not trying to be all competitive or anything I just really think that the answer is typically 'it depends' and although it takes longer to understand someone's unique situation, that's a great place to start.

@Carlos Zappatos

So, from our personal experience, I'd advise you to at least be OPEN to buying properties as a primary where you keep the option/flexibility to eventually convert into an investment.

The advantages of this, vs. the route you're suggesting include (from my view) the following:

• You get much better financing terms as a primary residence purchaser (lower rates, etc)
• You get to evaluate homes/properties that you LIKE and can relate the the tenant that will want stuff that's nice/that you like