Out of state investing prior to purchasing primary residence?

[Jesse S.]

Given that I live in a horrible location for local investing (i.e. Brooklyn) my wife and I are moving forward with the strategy of out-of-state, turnkey investing. While we haven't made our first purchase yet, we have a short list of finalist companies to buy from with the goal of completing our first purchase in Q1/Q2 and completing 3-4 purchases over the next 12-18 months. 

That being said, we're always on the lookout for an "affordable" apartment to buy in Brooklyn so that we can stay here long term as opposed to moving to the Jersey-burbs. At this point, I'd say there is a 50/50 chance that the stars will align and we'll be able to purchase an apartment in Brooklyn in the next 12-18 months (using a separate pool of funds than the ones earmarked for out of state investing). 

So my question is this: Should I hold off on out of state investing until I figure out my primary residence situation? For example, I don't want to get approved for a sub $100k mortgage for an investment property from one lender now, only to have issues with a different lender 6 months later when I apply for a much larger mortgage for my primary residence. I could see them raising liquidity issues, expansion of credit issues, etc. 

We're definitely going to hop on the out of state investing train at some point to start to build cash flow and net assets, however, I'm wondering if we should just pause for the time being. Would love to hear if anyone else has been in this situation and what they decided. 

Thanks BP community! 

[Shawn Ackerman]

@Jesse S. buying locally NYC can be more of a liability than an asset depending where/when you buy. Banks are looking at your DTI and liquidity. If you are looking to get an FHA mortgage to house hack here is some info on their guidelines. I would suggest going the FHA route as you are able to get into an asset for less than 4% out of pocket(plus closing costs/escrow etc...) - https://www.fha.com/fha_requirements_debt As someone who invests exclusively out of state and lives locally I'd say there is a great deal of opportunity out of state. But just be sure you vet the team as you don't want to be taken for a ride....Also some lender may be able to count the income the property is making now to offset the debt that it will put on your credit profile. Search for a national lender i.e. https://www.mbfinancial.com/personal/mortgage-and-loans who can walk you through this. I'd suggest contacting a national lender on this before making a move in either direction. All the best to you. Always remember to persist and you will WIN!!!!