Question Details

Meghan Miller, Home Buyer in Los Angeles, CA

I was wondering if it is easier to buy a house if I already own an investment property.

Asked by Meghan Miller, Los Angeles, CA Wed Jun 25, 2008

I am a first time home buyer and am thinking about buying the townhouse I live in in Houston, TX before I move to Los Angeles next year. Then when we move we would rent the townhouse. I would like to buy a house in L.A., but am wondering if it is better for me to have some equity in a home prior to buying or should I save the money for a down payment in L.A.

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Answers

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In terms of qualifying for a home purchase in Los Angeles, there would be no advantage in having equity in a rental property versus cash in the bank.

That said, if the Texas property would give you good cash flow once it's rented out, and you would still have money in the bank to make that down payment on a L.A. property, then it could be good long-term investment.
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1 vote Thank Flag Link Wed Jun 25, 2008
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