Is Your Personal Home Bad Investment?

[Paulo Tomas]

Hello Everyone, A few years ago I bought my primary residence thinking and being told that it would be a great investment. Not knowing anything about real estate investment a week into owning my home I started to rent out rooms. My reason for renting out rooms in my house was very simple, I rather save my money then spend it. My concept is that I try "To buy what I Need not what I Want." I didn't cash flow for the first couple of years until I refinance my home and interest rates dropped from 4.75 to 3.5. The difference was $543 a month. (This does include Insurance and taxes, with all expensise paid I pocked an average of $150 a month. Basically I live for free). I also have an $148K in equity in my property. Since then I have partnered up and bought two out of state investment properties. I also have been listening to biggerpockets and reading about real estate investment and one of the things that keeps popping up is that its better to rent then to own a personal property. I'm a bit confused by this.

My questions are as follow;

1. Should I sell my home and buy multiple long term buy and hold properties? Making sure each one cash flows.

2. Instead of selling should I borrow against my home? HELOC?

3. Should I stay in my current situation and use conventional and eventually portfolio lender financing?

What would be my best options?

Thank you,

Paulo

[Jay Hinrichs]

@Anthony Gayden

  great question and If I had a crystal ball I would be flying my G 4 around and not spending 2 minutes on BP  LOL...

I call it the accidental millionaire  I was born in the BAy ARea raised in Cupertino and did not know anything else.. other than when you lived in that area owning a personal resi was rule number one.. EVERYONE knew you needed to get into that house.