Hi. I'm new to the forum and have a question I've not really seen covered.
I currently owe my own home with 100% equity. I'm looking to purchase my first investment property.
I could get a HELOC or HE loan on my home, purchase an investment property and have the rent cover the payments with a comfortable buffer for maintenance and repairs. In this scenario I would stay living in my current home. The investment property could be multi family or a single family unit. I'd be worried about the risk of losing my current home though.
I could use an FHA loan to purchase a multi family unit and move into one of the units and keep my current home. However I took the Homebuyers credit in 2008 and that would be due immediately in full if I moved out. I don't have that readily available.
My living situation is a little different too. My son and his wife and child live with me currently and would like to continue.
If I purchased say a four unit rental between us we could occupy two units and rent out the other two. I could also rent out my current home. I'd be open to selling it if that would be a good option. Although that does make me nervous.
My questions is, given that we all want to live together, what would be the best options? I'm not a great risk taker. I used all the cash I had to purchase my current property solely for security. That paid off. I lost my job four years ago and was unemployed for a year but didn't lose my home. My employment is stable now. My son and his wife don't make much but they are working and going to school.
I feel like it's time to use my original investment to my benefit.
Long term I would like to own more investment properties. The goal being too build a house abroad to use as a holiday home for now and retire there in 10 years living of rental income. I have family there and cost of living is a fraction of what it is here. I could use family land and building a home would cost about 20-40k depending. Could always start small and add on. I would also like to be able to give my son a house, ideally as a gift. They have a baby and would need to be out of the city in 5 years for a good school. My current home is in a great school area.
Some numbers. Where we live property prices are low. My current home, in the suburbs, is valued at around 140k. A four unit in the city would start at 80k but would probably want to pay more for something nicer.
Considering all that what would you advise? Are there better options I've not considered? I'm over thinking this I'm sure but it feels like I have so much to consider. I'm hoping an outside perspective with more knowledge will see a clearer path for me.
Thank you in advance for all and any opinions and advice.
I currently owe my own home with 100% equity. I'm looking to purchase my first investment property.
I could get a HELOC or HE loan on my home, purchase an investment property and have the rent cover the payments with a comfortable buffer for maintenance and repairs. In this scenario I would stay living in my current home. The investment property could be multi family or a single family unit. I'd be worried about the risk of losing my current home though.
I could use an FHA loan to purchase a multi family unit and move into one of the units and keep my current home. However I took the Homebuyers credit in 2008 and that would be due immediately in full if I moved out. I don't have that readily available.
My living situation is a little different too. My son and his wife and child live with me currently and would like to continue.
If I purchased say a four unit rental between us we could occupy two units and rent out the other two. I could also rent out my current home. I'd be open to selling it if that would be a good option. Although that does make me nervous.
My questions is, given that we all want to live together, what would be the best options? I'm not a great risk taker. I used all the cash I had to purchase my current property solely for security. That paid off. I lost my job four years ago and was unemployed for a year but didn't lose my home. My employment is stable now. My son and his wife don't make much but they are working and going to school.
I feel like it's time to use my original investment to my benefit.
Long term I would like to own more investment properties. The goal being too build a house abroad to use as a holiday home for now and retire there in 10 years living of rental income. I have family there and cost of living is a fraction of what it is here. I could use family land and building a home would cost about 20-40k depending. Could always start small and add on. I would also like to be able to give my son a house, ideally as a gift. They have a baby and would need to be out of the city in 5 years for a good school. My current home is in a great school area.
Some numbers. Where we live property prices are low. My current home, in the suburbs, is valued at around 140k. A four unit in the city would start at 80k but would probably want to pay more for something nicer.
Considering all that what would you advise? Are there better options I've not considered? I'm over thinking this I'm sure but it feels like I have so much to consider. I'm hoping an outside perspective with more knowledge will see a clearer path for me.
Thank you in advance for all and any opinions and advice.
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