Home owners- at what stage u buy investment property?
I live north of Seattle. I put 10% down on my first house and I’m paying debt (mortgage + HELOC + property tax) monthly which is 23% of my base pay (before taxes) and 13% of my total comp (before taxes). Bought the house less than a year ago and its my primary residence. No other debt.
Now in a savings account I’ve accrued cash that is 10% of my house. The simple approach seems to be to pay off the HELOC that’s at a 5.25% interest rate. However given the HELOC payment is a couple of hundred dollars per month I’m not too worried.
However, I was wondering what the community’s opinion is on whether an investment property can be considered at this point? What would be the target price point be for a feasible investment house or apartment or condo? Based on reading online and other posts, there seems to be some room to take on additional debt / maintenance cost. Or, at what equity in primary residence would you recommend that I even start thinking of investment property?
In terms of total funds available for investment property- as mentioned I have 10% of primary residence and to show funds for getting a mortgage I have around 20% of the primary residence (included a 4 month runway for emergency).
Actual numbers concealed -sorry about that but hopefully theres enough info to make sense of the situation.