Getting started - creative MFH, SFH, or look outside DC?
Hey folks,
I'm doing research and gearing up to make my first foray into real-estate investing, and I was looking for some guidance.
My goal is to make the purchase in Q1 2019. I will be able to put around $50k down at that point.
My ideal would be house-hacking with a 2, 3, or 4-plex in the DC/MD/VA area. This'd be good for me financing-wise (I could take advantage of an FHA loan), and also practically (I'm looking to move in the next year or so). That said, MFHs are rare in this area, and usually pretty expensive.
I could try squaring that circle by mailing/cold-calling existing MFH owners, taking on a rehab, or buying a DC/Alexandria townhouse and converting it. Alternatively, I could shift my focus to buying SFHs (not as favorable in terms of financing, but should still be tenable). I'm also looking at Richmond VA, as there seems like there are some cashflow opportunities there, and I have friends in Richmond that could help me suss out the neighborhoods. It's ~2hrs away, so I'm not sure whether hiring a mgmt company is the correct choice in that scenario or not.
Cashflow would be nice, obviously, but that's not my main goal. Right now, I'm looking to build experience and relationships, get more comfortable with the industry, and essentially set myself up as best I can for purchase #2 a year or two down the line.
I'm eager to get your feedback. Are my MFH strategies plausible? If not, would Richmond be a better choice than SFH in the DMV? Anything else I'm overlooking/should be aware of?
Really appreciate it - cheers!