First property: Duplex or live in fix/flip
Hey everyone,
Last year I flipped 2 manufactured homes to get my foot in the door, however now I'm beginning to look into something a little more substantial. I'm wrapping up the CPA exam, getting all my financing ducks in a row, and trying to decide which route to go when I purchase in 6 months.
Additionally, I'm looking to relocate to Charlotte in 2 years. Their market has much better cash-flow and lower priced options than the Seattle area market, but doesn't appreciate as aggressively. My theory being if I can purchase in this high dollar market while living in it and potentially doing it with 0% or 3.5% down- I should. It will allow diversification in my portfolio.
Option A: A duplex (or tri/four if affordable).
- $350-$375 range
- Live in one side, lower rent than currently paying (potentially rent free depending on deal) allowing me to save more for future deals
- Once I move I can rent both sides, and hang onto it long term just letting it appreciate in value while continuing to collect rents.
- 2 Bedroom units in this area would rent for $1,500 each right now if updated.
Option B: Live in fix/flip
- $200-260k range (tough to find in this market)
- Live in it for 2 years to avoid capital gains
- Renovate the house while living in it
- We average 3% appreciation annually in my market
- I'd be looking at a home in the realm of $200k, $25k Reno, $300k-$350k sale price in 2 years.
- Sell before moving to NC, allowing me to have cash to begin investing with there or
- Rent after I move, Assuming $1700 range- and count on future appreciation in market, and added benefit of diversification in portfolio.
What do you guys think? I know I didn't go into details and I'll obviously run numbers more closely. I am just trying to strategically plan my first move. Any and all input greatly appreciated :)
