Aspiring Investor in High-Cost Market - Seeking Advice from seasoned investors.

[Dania Rivas]

Hi! I’m new here, 26, an aspiring real estate investor, and bought my first home about 2 years ago just outside of D.C. I am using  a house hack strategy with two roommates, and I’m able to afford the home with that setup and it’s going really well. However, due to the high interest rate, the property doesn’t cash flow — if I moved out and rented it as one unit, it would still be losing a couple hundred dollars a month.

I've saved enough for a down payment on a second property hopefully within the next 1-2 years and also opened a HELOC on my current home to cover any potential repairs or upgrades on the next. Now I'm trying to figure out the best next move as I work toward growing my portfolio.

Options I’m weighing:

• -House hack again: though I’d prefer to have just one roommate this next time. I’m also a bit nervous about holding two properties when the first doesn’t cash flow and probably won’t for the foreseeable future. 
• -More aggressively pay down the mortgage on my current home and request a recast to lower my monthly payment, in hopes of eventually breaking even if I move out. Though this will tie up my cash. Then maybe put a smaller down payment on the next.
• -Invest in another Virginia market, where better cash flow might be possible sooner, though I’m unsure about managing a first investment property from a distance.

The D.C. metro market is extremely competitive, high-cost, and there’s not much that cash flows unless you’re buying a major fixer or moving far out, neither of which is ideal for me due to work and family proximity.

I’d really appreciate any insights or creative advice from others who’ve navigated similar decisions, I’ve worked hard to build my savings and want to tread wisely, especially early in their investing journey. Thank you!!