New Investor, need advice!

[Rachael Agruso]

Hi All -

I recently started looking for my first multi-family property to house hack in CT. I've come across a deal that I am torn on, so I would appreciate more seasoned investors opinions.

 Here are the details; I have 51k to invest. I found a for sale by owner located in an A class neighborhood. It's a two family house, and we agreed on a 240k purchase price. It needs about $25-35k worth of work. My all in cost to just acquire the house would be ~$20,000k, this would leave me with about $31k to work with.

I plan to fix up one side to get it rented ASAP for around $1600. The other side I would do more slowly as I would be occupying it. Similar houses in the same area have sold for over $300,000 and the house next to it is for sale for $275,000 (this house still needs some work done). My point being, is there is a good opportunity here to build in some sweat equity. This will be a buy and hold.

My goal is to gain enough properties one day that gross enough cash flow so I can be financially free (I am 23 years old). With that said, I am torn between the idea of having all my capital tied up in one property, although I realize it is still a good opportunity to gain sweat equity in a good area. Or, should I use my capital to purchase a cheaper house that will still cash flow positive but, might in a B class neighborhood, and need a lot less work. This would allow me to have enough money to then go buy another property sooner.

Thank you, and appreciate any input!