Buying a Condo to later turn into a rental property

[Anthony Holloway]

Hi,

I’m currently renting in Los Angeles and I hate having to pay rent because I feel like I’m throwing money out the window. But with the salary that I make and the area I want to live in, I can only afford to buy a 1-2 bedroom condo. I’m looking to stay in the Valley; Burbank, Glendale or Pasadena area. My thought process is to buy a 1-2 bedroom condo in one of these areas and live in it till I’m able to refinance on it and put the refinance amount and anything else I have to add to buy a single family house. I would keep the 1-2 bedroom condo and convert it to a rental property. I will then use this strategy again on the single family house and continue to grow my portfolio. What are your thoughts on this?