Just Bought First Home - Where to go from here?

Question

I have been wanting to get started with real estate investing for awhile, and we finally bought our first home in March. We decided to house hack because it made the most sense for our situation and it was a less risky way to get started. We live in Asheville, NC and bought our home right over city limits in Candler, NC. We found a single family home that already had the basement converted to an apartment with a small kitchen and full bathroom. The previous owners did the build out for a family member to be able to live with them, and the work isn't outstanding - but it's a completely functional space. We added a wall to completely separate it from the upstairs portion for more privacy. We have a shared washer/dryer we will use in the meantime, but have a space to add one in the apartment later. We have our first tenant moving in at the end of this month. We also rent a room upstairs to my brother. All together, we will be collecting enough rent to pay roughly 2/3 of the mortgage.

Now that things are starting to calm down a bit and we are feeling moved in, I am starting to think about where we can go from here. We would eventually like to move out and rent out both units here and repeat the process with another property. Or if we get to the point where we no longer want to house hack so we can have more space to ourselves, I'd like to continue investing in rental properties in some capacity.

I'm wondering what an acceptable time frame would be to begin looking to buy our second property, and insight on continuing to house hack versus other modes of real estate investing. I know that depends a lot on each individual's goals and situation, but would love to hear how others moved on to their second purchase. I also have questions regarding:

- How does financing work on the second purchase once you already have one mortgage to your name? Is it possible to continue to qualify for a similar amount as the first home?

- The current house we are in will need some bigger renovations at some point. We know HVAC and potentially the roof will need to be replaced in the next few years. Should we prioritize getting those done before moving on to the next property?

- What are the best ROI renovations we can make to increase the rent value of our current property when we move out? Is it worth paying for a new washer/dryer hook up or will it not make enough difference in rent price so that if it works to share, just continue to share?

I feel like I need a mentor to be able to talk me through our specific situation and goals and help plan for the next move. Would love to hear thoughts, personal experiences and any pointers in the right direction are much appreciated!

Steve Daddeo · Answer

Hey Sebastian - Congrats on getting started and doing your first house hack. Lots to unpack here, but here are few of my thoughts.

Timing your next investment really depends on your goals and how comfortable you feel with your current setup. That said, one of your biggest factors will be financing. If you plan to house hack again, you'd be applying for another residential loan, and another mortgage in your name will increase your DTI, which can limit your borrowing power. However, if you decide not to house hack, you could go the DSCR (Debt Service Coverage Ratio) loan route, which qualifies you based on the income and expenses of the property itself rather than your personal income.

For renovations, focus on what actually moves the needle for rent value. The best ROI typically comes from adding bedrooms or bathrooms. Those additions can justify higher rents and appeal to a broader pool of tenants. Cosmetic upgrades like flooring, paint, or appliances are fine, but they mostly just keep you competitive with similar rentals, rather than allowing you to charge a premium.

If the HVAC and roof are functioning, I wouldn’t let those delay your next investment. But budget for them in case they do fail or need repair.  For instance, save 10% of your rental income for CapEx or maintenance.

Let me know if this was helpful and feel free to reach out if you ever want to talk through your situation more in-depth.

Jason Wray · Answer

Sebastian,

You have a lot of good questions that all need to be addressed based on a few things.  If you want feel free to reach you can send me an email or check out my profile.  I offer free coaching to help BP members and new investors avoid lost time and money.  You can buy another property even if you purchased a home in March.

It does come down to a few things like down payment, DTI and occupancy type.  Even if your DTI is an issue there are other programs to use to avoid those issues.

Like I said because it will take several conversations reach out and I can offer some help and some loopholes to help save money.

Wale Lawal · Answer

@Sebastian Albors

You're off to a fantastic start with a smart house hack—congrats! A good rule of thumb is to consider buying your next property after one year to qualify again for owner-occupant financing (low down payment, better rates). Lenders will count your rental income toward your debt-to-income ratio, so if your current property cash flows well, it can help you qualify for the next loan. Prioritize big repairs like HVAC or roof only if they’ll impact insurability or tenant safety soon; otherwise, it’s okay to defer if cash is tight. As for ROI, adding in-unit laundry and finishing out the basement more cleanly can definitely boost rent—think functional upgrades over fancy finishes. Keep going—you’re building a solid foundation!

Good luck!

Thomas Beckstead · Answer

Welcome to the area Sebastian. I moved to Candler as well in 2023 and have a basement apartment we rent on airbnb. Feel free to shoot me a DM as I would love to sync up. I am on an extended trip visiting family but will be back in July. @Mitch Davidson can get you setup with invites to the local BP meetups.

Just Bought First Home - Where to go from here?

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