Order of Purchases?

Generally if you need financing for both and wouldn't qualify for both financing at the same time ... investment first then primary. If you can show rental history on the investment property (generally 2 yrs for agency loan and case by case for portfolio loan) they can disregard the loan on your investment property. That said, you can buy your primary and rent it out, then it becomes a investment property and when you buy your "investment" propery you call it primary.

I'd go with GGman's second scenario. Buy your first (starter) home as soon as you can afford it. Pay it off as soon as you can. Then move on to your next home and rent out the first one for extra income. If you own an investment property while still paying rent on your primary residence, you're almost defeating the purpose of owning.

GGman is right: If you buy your primary first and then your "investment" property, you have to qualify for financing carrying the sum total of both loans -- because the bank is not going to believe that property #1 (unless it's a multi-family) is generating rental income while you're living in it.

ali r.
DG Neary Realty

Thanks for the responses. Triple Zero and ggman, but what if the primary residence is one that I cannot rent out? (For example, a coop that doesn't allow it).

Front Porch: so you are in favor of investment prop. first, correct?