Showdown of the Century (Round 5) Buying a Primary Residence vs. an Investment Property

In this episode Tom and Michael go head to head yet again with a hot debate on what is best; buying your primary or an investment property first.  --- Transcript   Emil: Hey everybody welcome back for another episode of The Remote Real Estate Investor. My name is Emil Shour and today I'm joined by my co hosts,   Tom: Tom Schneider.   Michael: and Michael Albaum.   Emil: And on today's episode, we're gonn a be doing another showdown of the century talking about buying your first rental property before you have your primary residence or buying your primary residence before you buy a rental property. So Tom and Michael are going to be going head to head and I'm going to be officiating this one. So let's take out the gloves and start the show down.   Michael: Tom, did you drink your um cheat juice this morning? aka coffee?   Tom: I did I did. We were talking about this yesterday. The espresso nap.   Michael: Oh boy. So did you espresso nap before we record this?   Tom: I did an espresso sleep. I what I did is like, I put the espresso in time release capsules. So I could you know start my sleep early. And then it dissolved at around you know four o'clock I got a solid 45 minutes asleep. I just watched elf pretty recently so I got a solid 45 minutes of sleep eating the the four main food groups. There's sugar bear,   Michael: candy corn, candy canes,   Emil: Maple syrup. Is it the last one? Yeah, we've all watched elf way too many times. Clearly.   Tom: There's like, within movies, there's like funny quotes that just like stick with you that are like not like super obvious. Yeah, my favorite elf quote is when elf is offering the spaghetti to like, what's his face? The dad and the dad's like, he's like, Oh, yeah, of course. Of course. We don't want that. Yes. My wife has an inside joke. Like when someone says like, No, I don't want that to go. Oh, yeah, of course. Of course.   Michael: That's really good. That's really good. All right, enough of the friendly gestures, the friendly pleasantries. Let's get down to it. Tom. Emil: Why don’t you guys get your corners here.   Michael: Weighing in at 150 pounds!   Emil: All right. So, Tom, Which side are you taking? To start this round off,   Tom I'm gonna start with the buying the house that you live in for   Michael: Easy one, 1st round knockout.   Emil: Alright, so Tom, you'll start this round, Michael gets the rebuttal and you get the final word. All right, I want you guys to meet in the middle touch gloves and fight.   Tom: Okay, so within this battle, the reason that you should buy your house first, before you buy a rental property is a simple question of math, that's going to be my number one argument. And it's a simple number of math because you need to think about your investing in your life holistically. So there's money in money out when you are buying a house that you are going to be living in not only are you getting on the old appreciation train of buying a house that you're living in, but you are drastically decreasing your costs. So when you buy a house that you are going to be living in good news, you're not paying rent anymore, you're paying a mortgage. So those that fun that you're using to pay that mortgage, you would still need to be paying rent if you were to buy an investment property elsewhere.   So, huge difference that is a Crossing the Chasm if you will of no longer paying rent number two which is I think more straightforward is you are learning the ropes if you want to get into specifically remote investing, what better way to learn the mechanics of a transaction and lending and all that stuff by boots on the floor doing the transaction where you are going to be living? Right makes sense. So learning the that transaction process the financing process and lastly, is we do this investing as a way to you know, get to a point to financial freedom, we do it for ourselves and what better way to do it for yourself then to get into a place that you can call h