Next steps after the first leap in the Seattle area
Happy soon to be Turkey Day, BP! First post after some lurking the forums. I'm looking for advice as to next steps for me. So, where am I?
The fun stuff:
I closed on my first property in August of this year (a 2-plex in Bremerton, WA)!
Could I have done better? *probably*
Did it get me in the game? *yes*
It was more of a proof of concept that brings me a little over $400/mo in cash flow. The tenants are a perfect, and came highly recommend by the prior owner. I'm looking to slowly bring rents up to year-over-year as we renew leases. Maybe I'm crazy, but since the tenants are great, I'm opting for the easy (albeit lower) ROI. If I have to turn the units we will be talking a different game.
Where I'm at:
Currently living in Seattle proper and rent-hacking 5 rooms with my GF. This keeps my personal expenses pretty low with rent being sub-$500/mo. I have great credit. A decent job paying a little over $55K with the opportunity to transfer anywhere in the state and a flexible schedule. And somewhere around $30K I'm looking to deploy in another property.
Current plan:
Currently working with an agent and trying for an owner-occupied 3.5% down FHA on as much as I can get my hands on (preferably as close to North Seattle as possible). I'm currently looking for 4 or 3-unit property in, or around, Everett, WA. (But I'm even considering 2-plex at this point). It has been tough since I'm just at the cusp of income and savings that keeps me out the majority of 3 and 4-plexes that come on MLS.
I want to go as big as possible with the FHA since it is kind of a one-time-deal in the area you purchase, and I want to maximize my internal-rate-of-return while eliminating my monthly rent. But, at the very least, with a 2-plex I would be "paying myself" each month instead of someone else.
What would you do given the information I've provided?
A. "The current plan the best use of your time and money. Stay on target! You are doing great!!!"
B. "Nix that 2-plex idea, and start looking for a 4-plex after Jan 1st when you get a 7% raise and qualifying will be easier."
C. "Stop doing things all by yourself! It is time to look for an experienced partner to invest with. You have the funds!"
D. "Don't blow all your money just yet. You'll need part of it for a rainy day. Sit back and let that passive income flow."
E. "Sell everything you have and move out of that god-forsaken, rain-soaked city to another market where your money will go WAY farther!!!"
F. [Fill in the blank]
Bonus. "Post this in [blank] sub-forum. Your way past 'starting out'."
Ultimately my goal is larger multi-family properties (20+ units).
P.S. I love living in the rain-soaked PNW :)