Stuck - investment property or primary ?

[Stephanie Sicard]

Hi everyone ,

So I’ve been studying real estate for almost a year now and have wanted to jump in months ago . I live in Miami , where the prices are really high and for the most part , it’s not great for investing . For example a 2 bedroom house starts at 290k . Due to this , I started to look in Jacksonville . The prices are great and you can find a lot of great deals , which I did . Some houses are 50k and up and cash flow really great. I decided to look for a lender and immediately ran into my first obstacle : most lenders do not do loans in that amount (50k , 60k) .

I’m currently renting and also want to get a primary home so I can actually pay my own mortgage instead of someone else’s . I thought to myself , maybe I should look for a primary home first and then try investing. I was going to look for a home that would still make sense even after I moved out . I started analyzing properties in the Miami area and none of them have made sense so far financially . When I move out , I would be cash flowing negatively. So I’m basically back to square one , and am unsure of what my next step should be . I want to get clear on what my goal is and stick to it . I also want to get started now , But I just feel stuck and I’m not sure whIch direction to move in .

Does anyone have any advice on my situation or has been through something similar when starting out ?

[Manny Lamarre]

Hi Stephanie, 

I can't speak to the issue on lenders not doing loans for 50-60k, but regarding your second point, I really think trying to buy a home first makes the most sense. Technically, the first home you buy is investing or at the minimum be part of a longer strategy (earning equity that you can likely leverage later on, appreciation, etc.) and at the minimum you start learning about the process. You may likely qualify for an FHA loan and could put less down (so you'll have more money left over for investing). Also, maybe consider looking at buying a duplex where you rent one side and live in the other. That way someone else is contributing to your mortgage. That's what I would do. It's good you're thinking about if the numbers make sense after you move out and revisiting your goals. More seasoned investors on here may have better ideas and thoughts than I do so curious to hear other insights. Best of luck. Good luck on the journey!

[Mei Acosta]

@Stephanie Sicard

Absolutely!! That’s a great point you make that it makes sense to pay your own mortgage rather than someone else’s. It sounds like you’re in the perfect position to do 2 birds with one stone and give house hacking a try! I’m sending you a message now