Hello,
I am a regular reader of this REIN forum and I find the information to be fantastic. I have a question which I'm sure many people deal with when looking to buy their first investment property. I would love to hear some advice or recommendations from your past experiences. I am looking to buy my first investment property but I do not have enough for a 20% down payment. I am looking in the Calgary market for a single family home and obviously Calgary prices are not cheap (maybe I should be considering lower priced markets). I am a home owner and make a good salary but with houses or even half of a duplex that I would consider buying being in the mid $300k and up range and up, I dont see myself being able to save $70K + anytime soon. Here are the options that I feel I have
1. Purchase a new primary residence for my family and I, then rent out my current house. The pro's to this are I could pay 5% down on my new residence since I will be renting out my current residence. In looking at comparable home's in my community I feel I would be get positive cash flow from this rental after everything.
The cons to this scenario are that to purchase a house in the area of Calgary that we want to stay in, price's have gone up quite a bit so I would be taking on a more expensive mortgage, plus still carrying my current mortgage.
2. Take out a HELOC to purchase a rental property at 20% down. My only concern is that I wont be able to find an investment property with positive cash flow after adding my monthly HELOC payments to the equation.
3. Sell my current house which has about 100K in equity. Purchase a new primary residence at 5% down (which will cost more than my current home due to prices going up), and put the rest of the equity towards the 20% down on an investment property.
Any advice that you could share is greatly appreciated!
I am a regular reader of this REIN forum and I find the information to be fantastic. I have a question which I'm sure many people deal with when looking to buy their first investment property. I would love to hear some advice or recommendations from your past experiences. I am looking to buy my first investment property but I do not have enough for a 20% down payment. I am looking in the Calgary market for a single family home and obviously Calgary prices are not cheap (maybe I should be considering lower priced markets). I am a home owner and make a good salary but with houses or even half of a duplex that I would consider buying being in the mid $300k and up range and up, I dont see myself being able to save $70K + anytime soon. Here are the options that I feel I have
1. Purchase a new primary residence for my family and I, then rent out my current house. The pro's to this are I could pay 5% down on my new residence since I will be renting out my current residence. In looking at comparable home's in my community I feel I would be get positive cash flow from this rental after everything.
The cons to this scenario are that to purchase a house in the area of Calgary that we want to stay in, price's have gone up quite a bit so I would be taking on a more expensive mortgage, plus still carrying my current mortgage.
2. Take out a HELOC to purchase a rental property at 20% down. My only concern is that I wont be able to find an investment property with positive cash flow after adding my monthly HELOC payments to the equation.
3. Sell my current house which has about 100K in equity. Purchase a new primary residence at 5% down (which will cost more than my current home due to prices going up), and put the rest of the equity towards the 20% down on an investment property.
Any advice that you could share is greatly appreciated!