Should I sell my rental property to buy my own home?

[Keith Gilbey]

I live in the suburbs of Los Angeles where all properties are super expensive, basic 2 + 2 single family residences sell for $500K ++ (that aren't in ghetto areas).  I choose to rent a room in a house as it's a frugal way to live in this area.  That house is going away and I need to decide which option is best for me, I can rent an apartment for $2200-2600 a month or rent a house with a friend for about $2000 a month each, I'd love to house hack a duplex but there are very few available and they are crazy priced.  The other option is to buy a modest 2 + 2 house for about $500K and rent out one bedroom, the stumbling block being the 20% down payment of $100K.

I also own an investment property in Ohio which I've had for about 18 months which after mortgage, tax, insurance, maintenance etc. brings me in a tidy $500 a month.  I bought it for $139K, it's worth around $155K and I owe $98K on the mortgage.  So I'm looking for opinions from more experienced people - Should I sell my Ohio investment property and use the money to buy one here in (way more expensive) SoCal to house hack, even though I'd still be paying half the monthly cost.  I could then start investing again after.

Thanks for your thoughts.

[Kimberly S.]

Hi Keith! I am a realtor in Los Angeles and I am familiar with the market here. I would personally recommend shifting your strategy to sell your Ohio investment property and get yourself a property to house hack in LA. This will help you build a strong foundation by saving you $$ on your monthly living expenses and LA real estate is appreciating like crazy right now. Once you have your house hack stabilized you can choose then save up a down payment to purchase another out of state investment with 20% which will be easier to do. And/Or you can stay in your house hack for a couple years, then convert it to an investment property and look for another house hack & repeat. That is my opinion, i'm curious to see what others think as well. Best of luck and let me know if I can be of any help to you!