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!

[Joemade Scott Carter]

Hi @Jay Campbell

Here's what I did and it's working out very nicely. I bought my townhouse and rented out the basement apartment and I'm practically living rent free and solidifying my credit quite nicely. The income from my 9 to 5 is being invested in my businesses so that I can eventually quit and have the freedom I so longed for. So with that being said, my advice would be to purchase closer to the city and your job and then rent it out. You will collect a nice hefty rent and your property will acquire equity quicker than purchasing a property somewhere way far out from the city.