Buying Primary Home vs First Investment

[Phillip Gonzales]

Good afternoon everyone and cheers from Phoenix, AZ! So over the last 6 months or so I have been debating on buying first home for family of continuing our rental and buy our first investment. A little backgroundI am FT Realtor and have been in the market since 2015. I've blessed enough to have sold 48 deals in my first 2 years and has given me a 6 fig income in 2016 and already in 2017. I have the chance to buy now come January, but torn between using the first buy as one for my family or using money toward flipping. I don't have the option to buy a 2/3/4 plex and live in one. Wife doesn't want that and I don't want that. So would you guys who did it over again for your first flip or buy a prime home first and the start flipping.

Current rent $950 a month and we live in uptown PHX which is a very desirable area with homes in mid 500s +. 

Mortgage est would be around $1500 and then I fig after buying. I would then start flipping. 

Any insight would be appreciated. 

[Bob Okenwa]

@Phillip Gonzales

As @Chris Mason mentioned, you'd lose out on 1st time homebuyer benefits by getting the rental 1st and the primary 2nd. Depends on how comfortable you are with renting and delaying the home purchase. I bought my first home last year and my mortgage is about $700 more a month than my rental, but I have no regrets as the home has made my wife and I very happy and comfortable. With home prices increasing and rates sure to follow at some point, it'd be prudent to buy in the winter vs next summer or spring as you already know.

With that being said, if I were in your shoes, I'd buy the primary and then flip. At least with that notion, you could take out a HELOC (if you buy right) and still have the best of both worlds. Not to mention, with a 6 figure income, an increase of $550 a month shouldn't set you back too much, although I have no idea about the rest of your bills or family situation so I won't assume anything. I'm looking to get a HELOC on my house at some point so maybe I'm a bit biased with my own strategy. If you have any questions, let me know. I'm glad to help.