appreciation versus cash flow

[Lesley Govan]

Hi,

So, I've been crunching numbers on a property in a hot area. It's a 2 family for $350,000. In my opinion and from living in the area (outside of this area) you can't go wrong buying in this market. (Fairfield ct). 

I want to live in this property and stay for 2 years use the equity in this home to buy another. When I crunch the numbers and take out 50% from the rent of rental apartment, (save the remainder for Cap expenses) I'm left with a fairly large chunk out of pocket, I think I can swing this but the numbers will be tight. I want to live and invest in this area but everything is so expensive. I believe I have to start somewhere and if I have to tighten my belt for a while in order to get in the market, you do what you have to do. Right?

I guess my question is: is this a smart strategy or should I just buy in less expensive areas. Only problem is EVERYTHING is expensive here!

I appreciate any thoughts on this.

Thanks,

Lesley