Primary Residence vs. Investment Property

[Joey Hamaoui]

Hi guys,

We are getting ourselves into position to make our first purchase in 2018. I spoke with a local lender recently from Movement Mortgage and he told me that I wouldn't be able to get an investment property loan without owning a primary residence.

First of all, is this true of all lenders or just this company?

Second do you think it is better to continue renting, purchase our first investment property and build up the passive income prior to purchasing a primary residence or should we go the typical route of purchasing a primary residence first?

It seems to me that if I would purchase a primary residence first (bad debt) I would have to pay of the mortgage (about the same as rent) but I would also have additional expenses associated with a home that currently the management company pays for such as lawn care, maintenance of the property, etc. In addition if we own the property we would be more inclined to improve it thus sucking more money out of our pockets.

On the other hand if I purchase a primary residence the monthly payment each month would go towards paying off my mortgage and building equity in the home. This could be useful down the road when I could apply for a HELOC.

One last input: The purchase of a primary residence would cost little to no money because of the "First Time Home Buyer Program" incentives in Duval county that we could use.

What do you guys think?