If you're going to start in a market you're eventually going to live in, I think that's a stronger case for that market."

These investments may be better than a mutual fund, but REITs miss most of the biggest benefits of owning real estate.

Low or no down, seller financing and low or no interest with a balloon payment later is the holy grail (location, building condition, market also matter but it sounds like you have all that).

I do like the tax benefits and leverage.

Granted, the real estate investing market was better in 2016 than it is now.Best of luck to you with whatever decision you make.

VA loans are the only loans that allow this, and there is no rate penalty for it no longer being your primary home.With that in mind, you could do a cash out refinance today at a higher rate than current market rates which will create profit on the loan, we can take that profit to pay for your closing costs.

They would likely be able to confirm that your expenses are reasonable for the area or that your rents are at market rates.

Paying those things benefits you because they facilitate STUFF exiting the house. 

Hello @Timothy Hilario,I think there are benefits to both strategies.If you move out of your apartment and rent it as a mid-term rental, you could see decent cashflow without pulling equity out of the unit.

I have a STR in Truckee that has done very well and I am looking for another STR, was thinking of the Sacramento market but I hear conflicting info on the permit process and the ability to rent it out for more than 90 days a year as a STR.