Hello,
(I have followed reddit personal finance peripherally for sometime, but just now creating an account so I apologize in advance for any oddities in the layout of my question)
I was looking for some insight into recommendations for timing of buying my first home to live in vs. a rental property.
A little background on me: 26M, single. Graduated from grad school in 1/2017 at which time I had roughly $95k in student loans which I paid off in full in late 2018 with aggressive payments. My base pay is around $120k/year but with picking up a lot of extra shifts and doing some 1099 independent contractor work in 2018 my income was around $155k (this was not a healthy work/life balance and was a direct result of wanting to get rid of the student loans as fast as possible. I anticipate my annual income will be around $120k/year moving forward)
This year I intend to contribute the max to my 401k ($19k), but am fortunate enough to work for a company that puts 10% of my pay into my 401k yearly as well (not as match, just flat 10%), so I should be contributing around $31k annually to the 401k. My 401k only has around $30k in it now as I was deferring contribution to pay off student loans. Otherwise I have no debts and currently rent at $900/month. Vehicle is paid off. Also around ~$45k in a MMA at this time.
Essentially I am interested in the idea of purchasing multi family rental units, but honestly I am not well versed in the topic. I also would like to buy my personal home in the next few years and have been saving towards a 20% down payment on that as well.
Would it be irresponsible to buy rental properties and a home in a close timeframe? If so, why? And what would be an appropriate timeline?
Should I save cash and try to “time the housing market”, like another 2008, to purchase a rental property (which I know often is frowned upon).
Any recommendations on books to get started in buying rental units and the nuances of being a landlord for a novice?
Thanks!
Submitted March 05, 2019 at 10:57PM by novo87 https://ift.tt/2TkkW9l
