New Investor Q: buy and hold cash flow in DC?
Hi all,
I'm a new real estate investor living in DC, and I'm considering buying a home with rental income potential - using a buy and hold strategy to live in in for at least a year and rent out part then all of it. I don't have the cash reserves to invest in a rehab-ready unit, but can put more than 4% down, depending.
However, the market seems so hot right now that I'm wondering if it's a good idea. Most 3 bed/2 bath houses or condos in NW (Petworth, Brightwood/Takoma, Ft. Totten) near a metro are going for $550K minimum, only some have basements to rent out. I want to stay in DC, so would be paying increasing rent anyway. What are your thoughts on buying a property as primary residence and rent to tenants or Air BnB? Do you have maximum price or other criteria? What do you think the housing appreciation prices will do in the next few years?
Thanks!
Piper