Next Steps on my Portfolio

[Christopher Morris]

Hello BP! 

After being fully “leased up” on my first multifamily property, I’m thinking about my next one. 

There’s two strategies that are running through my head. 

First: buy another multifamily property and FHA (or 5% owner occupied conventional) again, house hacking it for max rents.

Or

Second: buy a single-family fixer upper (400-500k) home, live in it for 2 years and either sell it to avoid capital gains tax or rent it out. 

Things to note: my S.O. is pretty against house hacking (but willing to do it for a year). I live in NJ so housing prices are fairly high. I anticipate having around 100k in liquid cash for time of next purchase. 

Ideally, I’d love to house hack again for a year, then purchase a single family after a year to eventually sell or rent out. Just not sure if I am able to do all over that in NJ over a 2-3 year period with my cash on hand. 

Not exactly sure where I’d sit from a cash out refinance standpoint but it’s a thought. 

After this, I’d love to get into long distance investing / airbnbs. But that’s a convo for another day…

Let me know if I’m off on my thinking here BP!