Bought our home 7 years ago with the intention of renting it out one day (didnt intend to fall in love with the area). We paid it off 3 years ago and have enjoyed stock piling money and becoming debt free but now we are eager to get into the business of real estate investing. I am in real estate for a living but have been hesitant to get back into debt - although I realize now that's a silly concept to be afraid of when I can leverage loans to increase our business/income.
The main question. Should we rent out our paid for home and use that rent to cover the cost of another home (and continue this cycle of moving every couple of years and renting out our personal homes - think lower down payment/tax benefits). We dont have children so moving around isn't a problem.
OR
Should we stay put in our paid off home and start investing into pure rentals that require more money down without any cash flow from our current residence?
I felt confident in the first option but now I'm hesitant and would love feedback. I am afraid of sabotaging the money we have managed to save over the years and want to maximize our liquidity to obtain as many doors as possible.
We are in the North Houston area and our current home would cash flow $1400/month after taxes, hoa and insurance.
Thank you!
