I started out reading – a lot – of books that I reviewed on the internet. Some were good, some weren’t, but some I thought were bad actually helped me out on my first deal (that I recently acquired) – I was actually amazed.
I think the smartest thing I did, was instead of buying a single family house (as my first home) I bought a 4 plex and moved into one of the units while I fix it up.
As long as it’s under 5 units, it’s not considered a commercial loan – if it’s home owner occupied, you get even more benefits… like lower interest and down payments.
I was actually looking for a duplex at the time, but I got lucky and found a 4 plex for the amount or less than a duplex with higher returns in rent. And it’s in a MUCH better location - but it did require more repairs, but I was able to do them all myself.
so bottom line is, if you’re looking to have a single family house, get a duplex (at minimum) – make sure the deal makes sense. If you can’t make cash flow off renting BOTH or ALL the units, then walk. You also have to take into consideration the expenses of Water/Sewer/Garbage (if you pay that for the tenants) That way, you’re only paying half the mortgage. When you’re able to move on to another deal, rent out the unit you’re in and move on. If you have a property being paid for by the tenants, this wont affect you in purchasing your Single Family home (or another multi)
So basically it means, “FREE” property…
It’s a round about way of getting into that single family, but If you read the Rich Dad Poor Dad book, this should be the way you think about things…
I did read that book, and I’d have to say it was a really good book on teaching someone how to “THINK” about money… Don’t buy a boat… spend that money on a house, then rent the house out and generate cash flow… use that cash flow to then turn around and make the payments on a boat … You still get the boat, but you also have a house being paid for by tenants.
that’s just my 2 cents …