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Updated over 3 years ago,
Purchase 1st Primary Residence Vs. 1st Rental Duplex OUS
Hi Everyone on Bigger Pockets! Im looking to try and get into my first rental duplex in Cleveland Ohio as well as purchase a primary residence Condo in my city of Ventura CA and Im not sure which to purchase first. The goal is to have 3 rental units within twelve months but need to know which investment to purchase first. The First option is to purchase a duplex in Cleveland Ohio with 20 to 25% down. Im under the impression that this may help, or at least not hinder my debt to income ratio. Im thinking that if I can get into a duplex that meets the 1% rule, It might help my situation. After I get both units rented out I can then try to qualify for a first time home buyer loan in my home city. I would also have to buy a condo. The market price of a condo in Ventura County is about 290k to 330k on the lower end. Also, (a duplex in Cleveland is about 100k). Second Option: Buy a condo first, rent it out after twelve months and develop a history as a Landlord. The problem I am seeing with buying a Condo first is that this will ruin my debt to income ratio. If I was to purchase a condo at 300k this would probably make it harder for me to purchase rental properties and I would need more income. I also wont qualify for a single family home as the price for a house in Ventura County is around 600k to 800k and so a Condo is my only option in Ventura. If there is any one out there that might be able to help me determine which route to pick first and shed some light I would greatly appreciate it. Thanks much!