I need advice on my next move!

[Alvaro Arango]

Hi BP,

I currently own a condo in Washington, DC but I felt it was almost a mistake. I bought it before I knew about BP and what I could have done but I have to move forward. My mortgage is pretty high but I was able to save some money to put down for another property but I'm not sure what I should do next . I have a couple of ideas. 1. I would like to rent my current condo and move to another (cheaper) part of the city and buy a house with roommates in about 1 year or so or 2. Should I invest right now in a second property?. I need some ideas, thoughts or anyone out there has gone through a similar situation?. I'm not sure what will be the best next move. Thanks for the feedback. 

Alvaro

[Sara N.]

@Alvaro Arango --I agree with your thinking & strategy. You move out & find a cheaper place to live in. As long as you rent out your place & the $$ covers all the mortgage, fees, etc. & you at least break (even if not make $100 extra or so), you're on track to saving $$. Find a tenant that will ideally stay long term & who is easy going (if they ask too many Q.s & want to start changing things in the unit that sounds like a demanding tenant). 

As for saving $$ & just renting a cheaper place vs. buying another property soon, I'd say go out and rent a cheaper place & pay off your other debts. Right now the DC market is way, way too competitive, and priced way too high even before the bubble/bust. Thus, as a RE investor you're not going to buy when it's peek price. Sure some neighborhoods like Shaw or Dupont Circle the prices will never really go down much even if the market crashes, but as an investor, you're looking for deals & upcoming areas, not necesssary places that's already over-valued. (I'd disagree that Pethworth prices has always sustained & will always go up--another neighborhood that I think is overrated.) Good luck!