To invest or not invest?

[Jose Guzman]

Looking for advice on when/how/what to invest for first property with my current situation:

Husband + wife, 3 kids and 1 due in September. Currently crammed into 2 BR apt and need more space ASAP.

Option 1 we considered purchasing a house for us to live in for a few years and then either sell/rent later on as we move on to something else.

Option 2: since property prices are so extremely high right now, we rent out a 4BR house and wait to purchase our first home some time next year so we can save for down pmt and hopefully prices drop (live in southern CA).

Just started learning from BP a month ago and we are serious about becoming investors and change our family’s life. Wisdom & direction from current investors would be greatly appreciated.

[Aaron K.]

@Jose Guzman if I was in your shoes I'd make finding a new primary residence a top priority, because 4 kids and 2 adults in a 2 bedroom apartment isn't going to last for long.  That doesn't mean you have to buy a primary residence but I'd look for something with more space that you plan to stay in long term.  Given that it will likely be more expensive than your current place whether you buy or rent, once you get settled you may need to reevaluate, what is doable with your new savings rate.  You could invest out of state or locally depending on your budget and investing style, but I wouldn't hold my breath waiting for SoCal prices to drop like they did in 2008