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Updated almost 4 years ago on . Most recent reply
First invesment property or personal home first?
Hey biggerpockets community!
I've noticed a trend with everything I've been seeing and reading. People that were living in their house they purchased who loved to process of buying a home and renovating it and continued doing it. It seems like everybody is in the same boat when it comes to owning their own property before diving in to investing in real estate.
I've lived in an apartment (Downtown Seattle) for the past 7 years as I've worked on my personal financial situation. Made some great investments in the crypto world the past few years and negotiated fully remote work for my job so I decided to move out of downtown where there was no way in hell I was going to purchase my own home for the goals I had in mind. I'm now living with my girlfriend in an awesome 3bedroom/2bath house on a lake and we're absolutely loving it for the rent we're paying but don't really want to be specifically tied down to one specific area due to the fact we're both fully remote employees now.
My question is, what is the better of the path (cause there is no 'best' path) to take when starting on a first investment property?
Is it better to have purchased my own place first to get use to the process or does it make sense to stay where I'm at renting a house that we both really enjoy and don't feel the need to own our place yet. My thought process was to start investing with close friends who have purchased properties and lending money to allow them to do renovations and receive monthly paychecks on the loans, or possible find a good off market deal (how ever long it takes me) and purchase it as a rental property in my vicinity as a BRRRR investment to learn the ins and outs before I tackle my own place, and possibly even allow my first house to be larger then I could without the initial equity from the first property.
Anyone been in this spot before? What have you learned from the path you took? Appreciate anyone that responds since I'm just getting into this and wanting to avoid obvious mistakes if I can.
I've noticed a trend with everything I've been seeing and reading. People that were living in their house they purchased who loved to process of buying a home and renovating it and continued doing it. It seems like everybody is in the same boat when it comes to owning their own property before diving in to investing in real estate.
I've lived in an apartment (Downtown Seattle) for the past 7 years as I've worked on my personal financial situation. Made some great investments in the crypto world the past few years and negotiated fully remote work for my job so I decided to move out of downtown where there was no way in hell I was going to purchase my own home for the goals I had in mind. I'm now living with my girlfriend in an awesome 3bedroom/2bath house on a lake and we're absolutely loving it for the rent we're paying but don't really want to be specifically tied down to one specific area due to the fact we're both fully remote employees now.
My question is, what is the better of the path (cause there is no 'best' path) to take when starting on a first investment property?
Is it better to have purchased my own place first to get use to the process or does it make sense to stay where I'm at renting a house that we both really enjoy and don't feel the need to own our place yet. My thought process was to start investing with close friends who have purchased properties and lending money to allow them to do renovations and receive monthly paychecks on the loans, or possible find a good off market deal (how ever long it takes me) and purchase it as a rental property in my vicinity as a BRRRR investment to learn the ins and outs before I tackle my own place, and possibly even allow my first house to be larger then I could without the initial equity from the first property.
Anyone been in this spot before? What have you learned from the path you took? Appreciate anyone that responds since I'm just getting into this and wanting to avoid obvious mistakes if I can.
Most Popular Reply
@Jake Chapman, buying your own home makes more financial sense. You can also think about house hacking it. Something with a basement or detached ADU to get your feet wet might be a good starting point for you