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Updated almost 5 years ago,
What buy first rental or first home
I make a fair salary, but recently came into a windfall that will allow me to get into some real investing. I’m interested in starting real estate. I’m going back and forth on the idea of meeting a financial advisor but in the meantime I’m seeing this as my first step:
I currently rent an apartment that is $1500/mo. My lease just renewed, cancelling it is basically $3k. Not the end of the world but again, I also have furniture that is expensive to move, but really I like where I live and don’t want to move yet. In short: I don’t have a strong desire to buy a place to live in for myself yet.
But I do like the idea of buying something to rent out, basic idea would be to get a condo that total out of pocket is like 30% of what I have in the bank, including down payment/rehab/vacancy etc. Then if that gets rented and feels stable would look at getting another. Maybe the 2nd one I would live in or rent it out as well.
I just want to kind of know or get an opinion of it is an exceptionally bad idea to forgo my chance of getting the benefits of living in something first, like a lower APR/down payment requirement or would the difference end up being marginal? Maybe I am being impatient?