148: Rookie Reply: Should You Buy a Rental Before Buying Your Primary?

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 15 January 2022

⏱️ 13 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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 name Understand how your financing options may change after buying the property Calculate how long it will take you to invest/buy your primary after your purchase Make the decision through a five-year lens And 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 Show Real Estate Rookie Rookie Facebook Group Real Estate Rookie Youtube Channel Check the full show notes here: https://www.biggerpockets.com/rookie148 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	This is real estate rookie episode 48 148
0:09.7	My name is Ashley Care and I am joined by two co-hosts today Tony Robinson and
0:16.4	Let me think and Remington James
0:21.0	Tony, what do we have today on today's rookie reply? What is the rookie reply for the new listeners that are
0:27.1	tuning in today? Yes, so for those of you that are joining us for the first time
0:31.0	every week twice a week we give you the inspiration information education motivation and
0:36.5	every other shun you might need to get started in your real estate investing career or keep it going
0:41.2	and blow it up if you've already started so love that we've got a third co-host here today to
0:45.2	kind of spice things up but Ash, what are we got on the doc before today? What are we getting into?
0:49.5	All right, I know we're all excited to get started but let's take a quick break before we dive into
0:52.8	today's episode. Are current interest rates making you depressed about cash flow? What if it
0:57.6	didn't have to be that way? Rinse2 retirement has 2.99% seller financing available on turn key
1:04.9	properties. You heard that right. That's a seller financed 2.99% interest rate where the average
1:11.7	cash flow is over $900 per month. They also have options where you can put as low as 5% down on
1:17.9	multiple investment properties with no PMI. Rinse2 retirement is the nation's leading turn key
1:23.5	investment company that understands what it takes to be successful in today's dynamic real estate
1:28.3	market. Their reputation speaks for itself with more 5 star reviews than any other company on the
1:33.8	bigger pockets website. Rinse2 retirement offers fully turn key properties that are newly built
1:39.2	or renovated, leased and managed, allowing you to invest with confidence in the markets that
1:44.4	offer the best returns. To learn more, visit rinse2retirements.com. That's renttioretirements.com or
1:52.4	call 800-311-6781. That's 800-311-6781 to learn more about how you can get started investing
2:04.3	as some of the best cash flowing markets today. Hey listeners, what are you doing October 15th
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.