Buy own home first or rental property?

[Henry D West]

Hello, 

for reference, I am in Charlotte NC and I am looking to buy my first rental property in the area or my first home. I don't really have the credit and the down payment to do both. What do you think that I should do? 

Thanks, 

Henry 

[Laura Shinkle]

@Henry D West it’s a great question. I do love the multifamily route, but Charlotte has a very limited amount of multifamily properties that would make financial sense for investing and cash flow. 

I have helped a client that is house hacking but with Airbnb, not a long term tenant. He is booked most of the month and it’s worked out that he hasn’t paid a single mortgage payment yet. If you’re open to that, it could be a great option. It will help you build something for yourself while not wasting money on rent. I’m sure you’re well aware of the crazy rental rates in Charlotte. 

The way I see it, if you stay renting and just buy a rental property, yes you’ll have the cash flow from the rental (ideally) but you’ll be throwing away thousands per year on rent. You’ll be able to save money faster for another down payment with house hacking. Happy to connect if you want to discuss more.