Investment Strategy For Second Home
Hello all! I'm new to the forum as well as real estate investing and looking for some advice as I figure out my strategy.
I'm located in upstate New York (albany area) and currently live in my first home (single family) which I purchased almost one year ago with very little down. I have less than 10% equity built up in the home, so there's not much leverage there. I would like to invest in my second property later this year or early next year. I've been approved for a $250k conventional loan, however, I don't have $60k laying around for a down payment (multiple lenders are requiring between 20% - 25% down since this will be an investment property). Realistically, I'd feel comfortable spending no more than $15k - $20k of my own money. That means I can only afford a $70k - $80k loan when factoring in closing cost.
Initially I thought my strategy would be to buy and hold a turn-key multi-family unit in a "B" area here in upstate NY. That is until I ran the numbers and realized that I'm priced out of that market. It seems I'll only be able to afford mostly vacant run-down properties in "C" areas here in upstate NY. With that said, I think I need to reevaluate my strategy. If I'm adamant about investing in my own backyard (upstate NY), and all I'm eligible for are mostly vacant run-down properties in "C" areas, then does it make more sense to scrap the "turn-key" strategy and invest in a property in a "C" area and employ the BRRR strategy?