Buy a Nice Property For More or a Not-So-Nice Property for Less
Hey BP,
I wanted to bounce a couple of thoughts off of you.
At my current state, I could buy a cheaper multifamily in an area that is less desirable to live. Since my plan is to house hack, it likely wouldn't cashflow but cashflow would be solid after I moved out. It's more likely that this investment would have tenant issues and deferred maintenance. I also have a significant other and I'm not sure how living in some of these areas would go down with her. I don't necessarily like this route but it's a way to get into investing quicker.
On the other hand, I could buy a more expensive house in an area that has more rent growth, potential for appreciation, job growth, hangout spots in the area, grocery stores, parks, and places people actually want to live near.
This would require me to save up probably close to 3-4x the amount that I have now (to have enough for down payment, closing costs, and reserves) . This property absolutely would not cashflow while I live in it but my living expenses would drastically decrease and I'd be building equity at the same time. I'm super frugal and I'm strict to a budget so this likely wouldn't take much more than a year to accomplish. Almost all the money I spend goes towards my rent, student loans, and basic necessities like food.
I know people have made both options work and I'd love to get thoughts from other investors.
Thanks for any advice!
Ben