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Investment homes and residential homes This content is an example amount because housing prices and rents vary greatly depending on the region in the United States. Please determine the investment amount appropriate for each region and calculate it. $300,000 2-bedroom condo for investment $600,000 4-bedroom house for residence When to buy an investment home, 30s and 40s Scenario for purchasing twice Find a place with a good elementary and middle school district; schools and parks within walking distance A 2-bedroom condo is suitable. Places with expensive HOAs, such as High-Rise condos, are not suitable for investment. Check if it is a community complex where rentals or Air BnBs are possible. Places with limited areas blocked by mountains, the ocean, or a lake increase in real estate value. Check the Cap Rate to calculate whether it is an investment. Purchase by period If you put down 20% in your 30s and buy a 2-bedroom condo, when you get married and start paying the mortgage as a couple or get a roommate and start paying the mortgage, in your 40s, your rent will be similar to your mortgage. You have to take into account mortgage, maintenance, and property tax, and you should be able to afford one month's rent every year. When you are in your 40s, you can rent out the condo you bought in your 30s and when you don't have any additional costs, you can buy a second rental property. After about 10 years, in your 50s, the rent can be similar to the mortgage. When you are in your 50s, you buy a house to live in. Considering visits from adult children and entertaining guests, a 4-bedroom house is suitable, and you should think more about the living environment than the school district. From this point on, if you rent out the condo you bought in your 30s, you will have money left over even after paying the mortgage, so it will start to cover part of the mortgage for your home. When you are in your 60s, the rent for the condo you bought in your 30s will cover the mortgage for your home in your 50s, and including the rent for the condo you bought in your 40s, it will cover the mortgage for your home in your 50s. When you're in your 70s, both of your rental properties will be paid off, so the rent you receive from both will cover your mortgage and some of your living expenses.