Getting Started: Personal Mortgage vs No Mortgage History

[Brandon Small]

I've landed an amazing job that pays a higher salary than I previously made while on active duty in the military and it has motivated me to begin my real estate investing journey, but I am still in the information gathering stages and I keep circling back to a thought that I haven't been able to shake. I also have an untapped VA Home Loan that I am still thinking about how I plan to use.

I understand the value (from a credit perspective) of having personal mortgage debt and I currently have very good credit. In my current situation, I am renting in Northern Virginia and have never owned a home. My question is, for a new prospective investor in real estate, would it be beneficial to begin with no personal mortgage vs should I have personal mortgage history and then begin real estate investing?

To take some of the ambiguity out of the question, my curiosity stems from a desire to understand from a taxation/strategy perspective, which situation makes the most sense. I don't have a lot of debt, and my monthly income allows for me to set aside an average of about $3500-$4,000 a month in excess cash.

I am a planner and an over analyzer at times and part of me wants to move from my rental situation to begin paying a lower price for a home I would own, and the other part feels comfortable renting while considering real estate investment. I'd like to get some insight on a smart way to do things considering my situation to avoid any missteps.

[Brian Mcmenamin]

@Brandon Small I've always looked at it as if I planned on living in the same location for more than 2 years, and I could find a place to buy that was cheaper than what I am paying for rent I do it. That's my personal take, not sure that would work for everyone. I also try to find homes that need a little bit of work, doing the repairs myself, and then selling when I leave. I've been pretty lucky because that plan relies on speculation, but its worked for me a couple times. I think you could probably swing both. Find a place for $2K a month and put away that other $1.5K in savings towards your investments. VA is really nice because you don't have to put any money down. Good luck.