Residence or Rental?

[Alexander Knox]

Hello everyone! 

I am looking for some advice on my next investment (that's what we are all here for right?!) and I imagine people on this forum will have better hindsight on this situation than I do.

For some background, I am a 23 year old public accountant working in Seattle, WA. I own a single family rental property in Phoenix/Scottsdale, AZ that I purchased with my friend/business partner (who lives in Phoenix). It is cash-flowing a few hundred dollars per month, which we use to pay off the mortgage at an accelerated rate. As of now this is the only real estate I own (50% ownership). I have come to a crossroads of what to do next. I have around 60-70k that I feel comfortable spending right now however in a market like Seattle, this doesn't get you too far.

I wanted to see what the community's opinion is on two scenarios:

1) Investing on another property out of state in the near future (on my own w/o my business partner) 

2) Saving up for a house further down the road in an expensive area around Seattle.

In regards to option 1) I could move back in with my parents in Seattle or continue to pay rent, and use the money (60-70k) I have saved to buy another property in Phoenix or Kansas City, KS (two areas I have been looking to purchase my own rental). Ideally I would like to find a duplex but these seem to be overpriced and rare findings in these cities - I am all ears on other areas. I pick these because I have connections here.

With regards to option 2) I am fine living in a less desirable area with a further commute for a couple years while I fix the place up, possibly rent out to friends, and build up some equity at the same time before moving to something more appealing to me and turning this into a rental. I just need to save up for a while longer to afford the downpayment. 

I would love to hear the groups opinion on this situation! Are there other markets for rentals people would recommend? Some days I feel like I find an answer and some days I feel so far from it. I need something convincing that compels me to commit to one or the other. I am reading the Bigger Pockets book: Long Distance Real Estate Investing but would love to hear any relevant book recommendations as well. This is my first post on BP and I am looking forward to any additional feedback on how I can create a more concise post too! Thank you all so much for taking the time to read this!