58 min listen
148: Rookie Reply: Should You Buy a Rental Before Buying Your Primary?
148: Rookie Reply: Should You Buy a Rental Before Buying Your Primary?
ratings:
Length:
11 minutes
Released:
Jan 15, 2022
Format:
Podcast episode
Description
This week’s question comes from Brandon through Ashley’s Instagram direct messages (follow her @wealthfromrentals). Brandon is asking: I live in a great neighborhood where my rent is less than a potential mortgage. I’m looking to invest in a different town experiencing great growth, but I would live there myself. Is it a bad idea to purchase a rental property before purchasing my primary residence? Both Ashley and Tony had to ask themselves this same question as they started their real estate investing careers. While they took different approaches, in the end, they both agree that this decision is far more subjective than many people think, and it will entirely depend on your family plans, cash flow, and net worth calculations.Here are some suggestions:Ask “will this home purchase contribute faster to my cash flow or net worth goals?”Decide on the importance of having a “home base” in your nameUnderstand how your financing options may change after buying the propertyCalculate how long it will take you to invest/buy your primary after your purchaseMake the decision through a five-year lensAnd more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie Rookie Facebook GroupReal Estate Rookie Youtube ChannelCheck the full show notes here: https://www.biggerpockets.com/rookie148See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Released:
Jan 15, 2022
Format:
Podcast episode
Titles in the series (100)
Starting at Age 45 With a "1% Rule" Property (in New Jersey!) With Tricia Baxter by Real Estate Rookie