Should Your First Real Estate Purchase Be Your Home or an Investment Property?

Morgan Hawes - Paradise Valley | Arizona

When you’re thinking about buying your first property, many aspiring real estate investors find themselves asking the same question: Should I start with my own home, or should I jump straight into an investment property? It’s a big decision and one that can shape the rest of your real estate journey.

For me, the answer is clear—start with your own home. Here’s why.

If you’re renting, you’re already paying a mortgage; it’s just not your own. Calculate how much you’ve paid in rent up to this point - money that you will never get back. By purchasing your primary residence, you’re redirecting that money to build equity and create a foundation for your financial future.

Wrighthouse team, led by Morgan Hawes & Deandre Wright

Why Start with Your Primary Home?

Buying your primary home is often the most practical and accessible option for beginners. Many loan programs allow you to purchase a home with a down payment as low as 3-5%. That means you don’t need to have a huge chunk of cash saved up to get started.

Once you’ve lived in your home for a year or two, you can consider turning it into a rental property when you’re ready to move. Then, you can purchase another home with a low down payment and repeat the process. This approach is called House Hacking, and lets you build a real estate portfolio step by step while learning the basics of ownership and management along the way.

Morgan Hawes in La Place, Paradise Valley | Arizona

Why Not Start with an Investment Property?

Jumping straight into investment properties might seem appealing, but it’s often a tougher path for first-timers. The higher down payment—typical 20%—can be a significant barrier. Plus, managing tenants and maintaining a property adds an extra layer of complexity that may be overwhelming for beginners.

Ultimately, it comes down to your financial situation, your goals, and the market you’re in. Unless you’re in a strong financial position or market where the numbers strongly favor investment properties, starting with your primary home is almost always the better move.

My Take

Starting with your primary home isn’t just about stability—it’s about strategy. When you pay your own mortgage instead of rent, you’re making an investment in yourself. From there, you can grow your portfolio at your own pace, turning one property into many.

Real estate is a long-term game. Begin with your own home, learn as you go, and let your investments grow from a solid foundation.