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I'm a planning to purchase my first home and faced with two scenarios:
- Should I buy a residential home, then wait a few years and buy a rental home
OR
- Should I buy a residential home to live in, then an additional residential property to rent out?
For those of you experienced realtors is any one of the choices a no brainer, does the choice depend on various factors, or does neither of the two give you an edge?
Thanks all for your comments, suggestions, tips, etc.
IMHO FWIW. If I was a first time homeowner I'd want to keep it simple until I'm more familiar with the costs of home ownership, maintenance, insurance, taxes, etc. Plus the time commitment for upkeep unless you can afford to hire everything done.
If you need the rental in order to afford the property you live in, maybe not a good idea as a first timer. So many unexpected things could go wrong. Revolving tenants and gaps in rental income could sink you.
Not everyone is cut out to be a LL. Are you sure you want that? Obviously, the potential headaches will depend on may factors. Especially if you're going to share walls.
Number 1 — buy yourself a house and wait a few years. Perhaps if you buy a smaller house now, then after a few years you can buy another house you like better and keep this first house as a rental.
Agree with the above. Especially since COVID set the precedent that the government can privatize public housing against the will of the home owners. A good friend of mine had a tenant that suddenly couldn't pay their rent, and although he wouldn't have evicted them anyway, at least not until exhausting every other possibility, it left him stranded with a property he wasn't making money on, was paying a mortgage on, and he couldn't sell it.
If you were stuck in that position, what would you do? Take a second or third job to pay the mortgage for the property you're subsidizing?
- Should I buy a residential home, then wait a few years and buy a rental home OR
- Should I buy a residential home to live in, then an additional residential property to rent out? (OR)
- buy a residential home to live in which INCLUDES some additional space to rent out? OR
- accept a lower level of privacy and rent out the MBR suite in a 3BR home.
There are lots of ways to leverage your job security and a responsible nature.
Just be sure you have those to begin with.
Number 1. Buy your first home only. You can wait a few years to decide if you want to be a Landlord. You may also rent out the first home you bought. That is what I did. You may never want to buy a rental. It's not all good times.
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