Need help for first home purchase

[Julian Sage]

Hello BP community,

Am stationed in DC and have been prequalled for 400k with the VA loan. Currently am living in Oxon Hill Md and am renting a 2/2 for 1500. 1700 w/ utilities.

We wanted to house hack but there are no homes currently available for renting the basement. My realtor is saying we should buy in the Falls church area because of appreciation due to Amazon HQ2.

The homes are 350-400k and currently rent for 2300-2500. Doesnt seem that good of a deal to me..

Should I buy a cheap place for 150k over in MD by the bridge as I can also rent in the future for 1500-1700? Or should I buy off LOCATION?

I have 15k cash and am AD military so my housing allowance is 2300.

Perfect world for wife and I would be house hacking a townhouse close by the Falls church area. 

Thank you,

Very respectfully,

Julian

[Russell Brazil]

Theres no such thing as a good deal. There are the prices and the rents that the market bare, which are a reflection of the underlying risk of the asset. An asset in the area that is $150k that rents for $1500 is a higher risk asset than the $400k property that rents for $2500.