Buy and Hold

[Chris DeChiara]

Hi everyone,

I'm a newbie to real estate investing and finally want to jump on board in buying and holding a townhouse/condo about 30 minutes from me. 

-The property will either be in a newly or recently newly constructed area. Or something built within the past couple years. New school systems and even a subway being built by the airport. Many people are moving to the existing properties.

-I'm looking at something around 150-250,000, but I guess this will all revolve around my motivation? That motivation would be a decent cash flow (might be more important than anything), appreciation of course, and the tax write off. 

-I would love to net at least $500 a month if possible.

-It's my understanding that an FHA (or is it VA?) that would be an ideal choice, but I would have to live in the property right?

-I have about 200,000 equity in my current SFH and one option I was told was refinancing and possibly using all of it to pay off the 2nd home completely. Then I'd have a much bigger original mortgage I'd have to pay off (with the rent). Is that smart??

-Is it personal choice to use all the equity and buy one home or a couple months with a smaller down payment in each for a possible bigger return? Or is one just a better choice?

Sorry for all the questions. I wanted to put everything in one place and depending on the responses split the questions up to the appropriate forums.

Thanks!!

Chris