Buying or Investing?

Question

Hello there,

I have been saving to buy my first home (I'm currently house shopping).. BUT lately I been thinking a lot about investing first. I wouldn't have any help.

Would it be risky staring with a rental property and renting it out since I don’t know how to do any repairs and I don’t have any actual experience?

Tim Burke · Answer

Have you considered doing both by house hacking? You buy a small multifamily property (2 to 4 units) which qualifies for owner-occupied residential financing similarly to a single-unit, live in one unit and rent the others, letting the others pay your mortgage and expenses, and learn as you go. I've done this for a few years now and it's been very financially freeing. Allowed me to pay off my student loans early and continue investing in more properties.

Benjamin Burket · Answer

@Beverly Anderson non-investors are always warning against the risks of investing (that's why they aren't investors).  People fear what they do not know.  A good question to ask is do you want to have a financial life and career that look like theirs?  A good tip is to only listen to advise from those who have been where you want to go.  Otherwise, you're looking at the wrong map :)

Nick Rutkowski · Answer

@Beverly Anderson

@Tim Burke is right, have you tried looking into buying a duplex and house hacking? Kill two birds with one stone.

To answer your second question, you need to do it and not let the lack of experience stop you. Remember, we all started out with no experience, money, or idea of what we are doing. Good luck!

Beverly Anderson · Answer

Thank you, very true! That's the reason I signed up here. I don't personally know anyone successfully investing and I was tired of the negative advice from folks who exactly like you said "don't have the experience to tell me if it would work or not!"

Beverly Anderson · Answer

I really appreciate it that. When I tell people I rather rent and invest instead of buy my own home they say I’m crazy and it’s too risky (which may be true) but I believe greater the risk, greater the reward! But when you put it like that seems like a better idea I will start looking into multi-family units available. Thank you!

Beverly Anderson · Answer

Thank you that’s great advice.. will do some further research on it!

Beverly Anderson · Answer

Wow that’s so inspirational!! & That’s actually a great idea. Thank you! I will look into multi-family units available in my area and price range

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