Strategy for 1st Rental in DC, MD, or VA

[Jay Campbell]

Hi,

I'm a brand new investor, currently living in northern Virginia, looking to purchase my first rental property within 2016. I've done a lot of reading/research, listened to BP podcasts, and read through the forums and blogs. At this stage I'm stuck between mainly 2 strategies, either some form of house hacking or buying a cheaper property and renting right away.

I currently work in DC so if going the live-in route, I'm looking to stay within the beltway. Due to the lack of small multi's in this area, I'm considering buying a condo or townhouse needing minor rehab with an FHA loan, living in for a year, and then renting it out. This will be my first home purchase (personal or investment) so I'm thinking this route would be a good learning experience for the entire process.

Alternatively, I've seen areas that are 1hr to 1-1/2hr away where I could buy a condo or SFH with a conventional loan, rehab, and then rent. These properties are cheaper, but appear to need more rehab in many cases.

Does anyone familiar with DC, Maryland, or Virginia have any insight into what makes more sense in terms of long-term cashflow?

Any help is greatly appreciated!