It's important to note that you cannot include your primary residence in a 1031 exchange, as it must be held for personal use rather than investment or business purposes.However, your primary residence may qualify for the Section 121 tax exclusion if you've lived there for at least 2 of the last 5 years.

The most important thing is to start, so I wouldn't discourage you from buying.

When a tenant causes problems, I can remove them six ways from Sunday, typically much faster than the courts could do it.Financial Management & Reporting: It may seem small, but accurate accounting is important and not in the tool box of most investors.Market Knowledge & Rental Rate Optimization: Understanding the market is critical to maximizing returns.

Due to the current interest rates, you probably can't live for free, but you can definitely learn how to house hack in that first year, reduced your personal housing costs, learn the rent by room/co-living strategy on-site, and then probably break-even after move out, but most importantly, it is possible to make that work in 2025 with today's rates.It just takes being open-minded and willing to be flexible for the 1st year.  

And most importantly own it. 

Verifying last 2 years of rental history very important!

Verifying last 2 years of rental history very important!

@Bonnie Low - it's important to know what services you're paying for.

It is very important that the Wrap Mortgage is written at market terms using a knowledgeable attorney, an RMLO, and a servicing entity.These have risk and I'm not saying a new investor should go out and do them. 

I think the important takeaway is that you need to know what's going on in your local market.