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My wife & I twice decided to rent our personal house & buy another. Of all the strategies to begin investing in real estate, I think it's the simplest (and safest) of all. I've always called it the “Live-In-Then-Rent” strategy.
(6 tweet thread to explain)
(6 tweet thread to explain)
The strategy is widely available because we all need a place to live. But it requires *strategically* picking a house that will also make sense as a rental, including:
- a reasonable size (not a 3,000 sqft McMansion)
- a quality location for ease of renting & appreciation
(2/6)
- a reasonable size (not a 3,000 sqft McMansion)
- a quality location for ease of renting & appreciation
(2/6)
This is also a perfect starter investor strategy because of financing. Owner occupant financing has smaller down payments (0-20% depending on programs) & long-term, fixed interest. But once you move to another house, you can usually keep the house & the attractive financing
(3/6)
(3/6)
Getting your first investment can be tough. Where to invest? How to fix it up? How to rent? The Live-In-Then-Rent simplifies & slows that process:
Step 1: buy, move-in, stay awhile (1-2+ yrs)
Step 2: optimize house as a rental (i.e low-maintenance) Step 3: move & rent
(4/6)
Step 1: buy, move-in, stay awhile (1-2+ yrs)
Step 2: optimize house as a rental (i.e low-maintenance) Step 3: move & rent
(4/6)
The beauty of this process is that it's SLOW. Take your time! Learn how to buy & finance a house. Move-in. Get to know & enjoy the neighborhood. Fix-it up (if you're handy) or hire it out (if you're not, like me!). Then eventually transition to a rental. (5/6)
For years many people have done this strategy successfully. I just wanted to highlight it & share my own positive experience. For more, here's my podcast episode & in-depth written case study (with before/after photos, numbers, details, etc): https://www.coachcarson.com/rent-house-buy-another/
