Buying duplex as first investment

[Account Closed]

So after careful consideration and weighing out other options, my wife and I have decided to move forward with purchasing a duplex as our first home/investment! We currently rent an apartment and within the next 8-12 months our plan is to purchase a duplex, live in 1 unit for 1-2 years while renting out the second unit. After that we will look into purchasing our "dream home" and keep the duplex then renting out both units. Now , my question is what is the best course of action on this? We aren't looking to do anything fancy, we want to get our feet wet, purchase and own a property and get exposure to being landlords and learn from there. Please critique and give feedback! We want to absorb as much as possible from BP to guide us on a path of success and enjoyment

[Charlie Fitzgerald]

I would do exactly as you have outlined above (and have done do personally myself many times).  Buy the duplex, live in one unit and rent out the other and bank as much cash as you can manage to bank from your wages and CashFlow until you have a sizeable down payment to make on your dream home.  Once you move into your home, rent the other unit, and continue to bank as much of your wages and cash flow from your duplex as you can, until you have the downnpaymeht you need to buy your next rental property.  This will be 25% of the purchase price + closing costs and reserves.  When you get to this point, call me.