Currently, we are renters and have a low monthly rent payment. If we purchase a personal home to live in, we will be spending an extra $500 per month. Are there any disadvantages in buying rental/income property while we are renters vs. buying a personal residence first and then proceeding with rental property. Our goal is to build up enough rental income to cover our monthly expenses. It seems that purchasing a home will just increase our monthly expenses by $500.
Thanks for your help!
How about buying a property to live in and rehab it while you live in it? Then, move out and get another. The best way to do this would be to live in it for 2 years and then move, so that you avoid capital gains if you sell.
Have you considered buying a bank owned property? You can many times get these homes for 70-80 cents on the dollar or less if you are patient. If you find one like this, you should not be too far off your rent unless you have an incredible deal on rent. Also, you will then have a tax write off from mortgage interest which will allow you keep more of your income each year.
Hi RJ Baxter,
How do you find out information on local bank-owned properties?
thanks for your input,
You might also consider getting a duplex and living in one half while the other pays for your mortgage. Thats what I do, cheaper to own than to rent.
Sorry, been off this message board for awhile- the best way I know to find bank properties is to find a Realtor who specializes in this. Let them do all the work finding them.