Newbie and seeking guidance on buying the first property

[Nabeel Ahmed]

I am a newbie and just starting out. I have a stable job and I have always hustled and saved. I also own and live in a single-family house with at least $150K+ equity in it. I live in one of the richest counties in the country so property values are super high and its not always easy to buy a second property thats going to be affordable. As I am reading more books and content on real estate investment, most books talk about examples of properties that seem super cheap ($100K-$200K range) which is impossible to find in this area (Northern Virginia). My credit score is in upper 700s and I have had a successful career in marketing and business development. 

I have also read through other threads where some PROs are recommending buying a multi-family unit and living in one of the unit and renting out others however if I already own a house and live in it, would you still recommend doing that?? Should I buy my first rental somewhere else? If yes, how would I manage that? Should I buy a townhome or a single family? I am just confused and don't seem to find the right answer anywhere. Looking forward to learning from each one of you. Will you provide your guidance?

[Adrienne Green]

Hi @Nabeel Ahmed! Welcome to the world of real estate investing. You're not finding "the right answer" because there is no one right answer: what's right for you depends on your specific situation. It depends on whether you have more time or money to spare, your own strengths and weaknesses, and the real estate market where you are.

For example, for those starting out in their twenties, house hacking is fabulous. It sounds like you're a spouse and father, so I doubt you're looking to rent out extra rooms! So while house hacking is a great strategy, it's not the one for you.

As another example, or those with more time than money, live-in flips are a great option. They can be bought with a primary residence mortgage and very little down, and you can put in the sweat equity.

You can find investment opportunities in the Northern Virginia market, or you can look elsewhere. Make sure to factor in the extra cost of travel and boots on the ground if you go elsewhere. 

Northern Virginia doesn't really have multifamily opportunities. There are people who are successful with fix and flips and buy and holds for condos, townhouses, and single family homes. While the negative of living and investing in NOVA is there's no super cheap options, the positive is that we have great appreciation and more security with home values. 

Since there is no one right answer, I suggest you determine what your strengths are, what strategies play to those strengths, and learn about crunching the numbers on potential deals. Doing those things will help you find the right strategy for you.