Should you buy a residential home first, before you start investing in real estate?
Because renting an apartment I would have a lot more cash to work with.
In my opinion yes. Owning your own home gives you valuable experience in acquiring and owning real estate and opens a whole world of tax benefits otherwise unavailable. It also improves your credit score more quickly and you get all of this with money you would otherwise spend on rent.
Every home I live in is an investment.
A number of reasons to buy your “personal” home first.
You will get first time homebuyer loans. If you buy investment property first, then this would not apply at a later time. The benefits of it are huge. Don’t miss it.
Owning a property is better for all the reasons given in the above posts.
Buying YOUR home first enables you to learn about the process without worrying as much on the “deal.” If you happen to mess up your numbers (ie, pay too much), then you’ve got time on your side to make it better. Not so with an actual investment property.
Most new investors never buy a 2nd property. It would be a same if you never own your own home because you bought an investment first.
If you purchase right (ie at a major discount), fixup while living in it, wait 2 years and sell, under the current tax law, any profit that you make, up to $250K if single ($500K if married) is not taxable. That’s HUGE!!! I personally know of an investor that makes a VERY comfortable living doing nothing but buying a property, living in it for 2 years and selling it, moving to the next one.
Raj
On the other hand, if your real estate career goes south you won’t have your own home at risk.
I agree with you this is definitely true. First enjoy the benefits of your residential property, keep on learning, and when you’re ready, you can start seeking a bit of help from professionals. Then call yourself ready to plunge into real estate investment.
I have a question though. If you finally invest on real estate, what property in what location do you intend to buy?
Just curious. :dance2
Jeffelite,
I disagree with the others. I would suggest staying in your apartment and keeping your costs as low as possible. Use your money and credit to start investing. Then you can buy your house with the profits from your REI business.
Mike
Even though i have no experience yet. I’d say buy a residential house get a few buddies to pay rent to stay there, that way your cost are equal or lower to what your apartment is, wait the two years and sell
if this is a bad idea please someone correct me because i’m thinking of doing this myself…
You can always buy a multi as your first home and get the best of both worlds.
Do you really want to live with your tenants? NOT ME!
Mike
Not particularly but as a short term situation it wouldn’t be horrible unless it was low income and in the middle of the ghetto. If it was a nice suburban neighborhood it wouldn’t be too bad.
well if u put it that way 
me neither but in my situation its with two people I’m familiar with and been in the same house with before so i know their living styles two’s year with them paying rent would be extremely beneficial it cut coast and maybe gives you more money to play around with
And don’t forget that any gain on the sale of your primary residence, up to $250k for singles, is tax free so long as you’ve lived there 24+ months.
What is wrong with finding a pre-foreclosure and rehabbing and ref’ing?