All Forum Posts by: Hannah Hinzman

@Ned Carey

1. If we were to buy something to occupy as a primary residence for the next 1- 1.5 years, we would keep it after we move away from the area as a rental.

I have about $25k cash to use towards a purchase.

BP family, I need your advice!

I am finally in a position to start investing. What would you do for your first deal? Options outlined below.

1. My husband and I currently rent a 1 bedroom condo close to the city. We have a 1 year old and really could benefit from 2 bedrooms. We live in a very expensive market (DC). There are a few condos on the Virginia side that we can afford. The condo fees range from $600-900/mo. The proximity would increase my husband’s commute over an hour. We could buy a single family home or townhouse on the Maryland side but the area has high crime. The commute would also be over an hour. I should caveat all of this by saying the commute will only be temporary (meaning within a year and a half, we will most likely move). We would keep the property after we move and rent it out. I would also aim to purchase this property under market value and build some sweat equity. I would want to tap into this equity and use it towards purchasing a rental property (as quickly as possible).

2. Stay where we are (live within/ below our means), use cash to buy an investment property that I can BRRRR. Would be in a higher crime area but local.

3. Buy a turnkey vacation rental property right next door to my husband's mom in FL at market value (no option to BRRRR). 8.5% cap rate if rented to long term tenant rather than as vacation rental.

4. Buy a multi family in Baltimore that already has existing tenants. I would imagine high operating expenses due to old buildings and inefficiencies. Baltimore is about 45 min.+ from us.

I love the idea of house hacking but I just don’t think it’s a viable option for us right now. If I purchase an investment property prior to purchasing a primary residence can I still benefit from First Time Home Owner programs later down the road?

Thank you all! I’m looking forward to receiving some insightful responses.

@Matt Rose

I’d love to know who your loan guy is. Thanks!