Should I invest in a rental property or buy my own home first?

[Devan Kaye]

Hi everyone! I am interested in acquiring my first rental property through Rent to Retirement turnkey company. I am still renting an apartment for myself. Would it be smarter to buy a house for myself to live in before buying a rental property? I'd love to househack, but I can't qualify for a loan large enough to purchase a multifamily residence yet. I've been abroad for the past 3 years. I just got back to the states early this year and finally got a job as a property manager assistant. About 25%-50% of my income is commission through leases and banks need to see 2 years worth of income if the job is commission based. I have enough for a down payment for a few of the homes with the turnkey company. It would be a while until I can get approved for a loan for a multifamily residence to househack. Looking for advice on whether to pull the trigger now on a home through Rent to Retirement or wait until I qualify for a loan to househack (could be 2 years from now). I've heard that it's easier to buy your own home once you have a few rental properties and not the other way around. Thanks in advance for your help. I'm on my 4th real estate investing related book (2 of those were by Brandon Turner) and I'm eager to get started!

[Zach Lemaster]

@Devan Kaye

This is probably a question that many people find themselves pondering. This really comes down to a lifestyle choice. Everyone wants to own their own home as there is a personal satisfaction in that, but it really helps to step back and take an objective view on what is really the best course of action when it comes to your overall financial goals. If you read the Kiyosaki books he is always saying how your own home is not an asset which is very true from an investment perspective. Your primary residence takes money out of your pocket as a liability, while an income producing rental property puts money back in your pocket as an asset. So from a strict investment standpoint purchasing a rental property is the better option to improve your financial balance sheet. There are of course many other things that need to be considered however. Are you living in an expensive market where your mortgage expense would be much higher than you are paying in rent? If so, then maybe it makes sense to simply continue renting to allow you to save up more capital quicker. Lots of things to consider here, and I'm happy to discuss further with you over a phone call if you'd like. Just let me know what other questions you have, or if you would like to have a continued discussion on this topic.

In regards to investing with our company, I've included some resources for you below to see the types of experiences many investors have had, and to gain a better understanding of what we do. I'm happy to schedule a follow up call whenever you would like. Just let me know!

I'm sure you'll find this informative. Looking forward to hopefully connecting in the near future!

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/users/ZacharyCole/references