What direction should I go next?

[oaksvirals]

Hello everyone! This is my first post on these forums and I look forward to reading any replies.

I'm coming up to a point to make a decision between two things. I'm currently renting a house and want to increase my monthly cash flow and I also want to purchase a home.

Would you either:
A) Purchase the home first.
or
B) Increase monthly cash flow through purchasing a property to rent.

Thanks.

[bjl584]

We need more info.

What is your income? Your expenses? Your debts? Your assets?

[snafu]

In order to increase cash flow I'd examine every dollar spent and chose to discontinue those items least disruptive or least enjoyed/appreciated. Alternatively, seek a second, part time job to bing in more income.

Not sure if you mean to buy a house with a basement suite to rent or duplex. Some people rent rooms or share their house with tenants to help increase cash flow. Being a landlord is fraught with problems so you need certain skill sets to stay head of the things that go wrong. I suggest you take a careful look at how a mortgage works. For the first half of the debt, yo are prepaying interest, hardly any of your money goes to principal. You are paying interest, municipal tax, mortgage insurance [if you lack 20% DP], house insurance, utilities, trash, and a long list of repairs.

[agarlits]

Hello everyone! This is my first post on these forums and I look forward to reading any replies.

I'm coming up to a point to make a decision between two things. I'm currently renting a house and want to increase my monthly cash flow and I also want to purchase a home.

Would you either:
A) Purchase the home first.
or
B) Increase monthly cash flow through purchasing a property to rent.

Thanks.

Buy your house first, that will keep you from paying rent which is throwing money down the drain or having to lock into a mortgage payment for the next 15-30 years. Also with the real estate market the way it is right now generally speaking you look to make a substantial gain on the property overtime. Assuming you follow the first rule of purchasing real estate... location, location, location. Once you own your home I would start looking into rentals. The idea would be to find rental properties in desirable locations or close to high demand amenities, this will help ensure that you always have a tenant. Once you find the property pay it off as quickly as possible and start saving everything that you can from the rental income so that you can buy more properties outright. By doing it that way you aren't paying mortgages on several different rental properties and all the money you make from the tenants each month is pure income, or close to it.