WHAT SHOULD I DO ????

[Account Closed]

Hello Biggerpockets folks,

 I currently owner/occupy a condo which I purchased in 2007 at the peak...I am underwater and want to invest in RE. Should I rent it out and break even and purchase a sfh with fha and fix it up or stay and purchase a sfh and rent it ??????

[David Dey]

I think this may be a case of tomatoes and orange cake.  

At first I thought it was a case of toMAYtoe toMAAtoe, then I thought it was apples and oranges, then I thought, if you want your cake and eat it too, there is a simple solution... Buy two cakes!!

Then I realized, it's all great advice so I put it all together!!

Ok, so I'm going off of 3 hours of sleep but the point is that it doesn't really matter which way you go as long as you take action.

You could buy with FHA and live in it, which would be less out of pocket but also less cashflow from the condo or you could stay in the condo and rent out the house which hopefully was at a better price so it cashflows better, (who's profits will go toward the paying of the condo) See? Tomatoes and orange cake!!

Now, you do have one more option of making your tomato-orangecake A-LA-MODE.

Why don't you buy a 2-4 unit, buy that with FHA and live in it? That way you can live in one side and rent out the other 1-3 units and also break even with the condo.

BAM!!!!

(Full disclaimer:  I'm not sure how appetizing tomato orangecake is, even with ice cream)