Buying a rental property before a primary residence?

[Kody Romero]

Hello, I am a college student going to college for free while renting an apartment. In my area, Flagstaff Arizona, housing prices are very high. We were looking at buying a condo, but a 2 bed 2 bath 900 sq/ft condo is typically selling between $180,000-$250,000 which I find way too high for a small unit.

We will be in Flagstaff for 3 more years completing college, and I would like to start building my real estate portfolio as soon as possible. Would it be smart and reasonable to buy a cheaper rental property in a different, more affordable market, even while we are renting ourselves?

Thanks in advance for any help or suggestions!

[Shawn Mahoney]

Local Flagstaff here, your main asset is to house hack for the next 3 years while in college and Flag is an awesome rental market! Buy a house have roommates, use what you would pay for rent and your roommates rent cover mortgage. The mortgage terms are great for your primary residence. After three years you could sell without tax implications if it was your primary residence or you could keep for your portfolio and repeat house hack use by buying your next "rental primary residence" wait another 2 years repeat again. Veteran? Use VA loan and do this process even more effectively! Even with the high prices, with your house hack capability there are some properties that work. Keep an eye on the market, you've got time...