Veteran opinions wanted for first SFR rental! Thanks!

[Ben S]

I think I may have posted this response in a different category and didn't want it to get swept away, especially if it may be in the wrong thread! :)

As a newbie, I've finally obtained the funds to safely invest in my first buy & hold - So this month I've been doing nothing but debating over myself on two decisions - talk about feeling like a slacker compared to you veterans out there!

Just debating two directions, which I would aim to do by the end of the year (give or take depending on when a good deal happens in my area!):

1) Based off experiences with the type of SFR to invest; I'm thinking of moving my wife and I into a nicer suburb (housing ranges from 120k+, rents in the $1.2k-1.8k range) - but won't make the jump until I find something around 100-120k so I can rent it out in the future if I chose to move.

If I did this, I would rent out my current townhome (purchased for $75k & built in 2003, rents for about 950-1100 in very desirable location in Jacksonville)...

Option 2 would be based on trying to leverage more cashflow to help feed future investments:

2) stay in my townhome, and drop 25% on a SFR around the 70-80k range that would rent for around $800-1k a month, but the homes in these areas would be ones built in the 1970s concrete block style.

I feel like former option would best my investments for building wealth as I do not currently depend on real estate cash flow as a source of income.

On the other hand it feels like having a starter investment that yields more cashflow would help seed future investments.

Thoughts are always welcomed!

[Rich Weese]

I would urge you to make the wife happy, get out of the condo and take advantage of the owner occupied rates first and buy an owner occupied home. It requires low down and leaves reserve funds that you could still buy an investment property based on certain other items.
1. Do you want to do more than one investment?
2. Is your job/income fairly safe?
3. Are you willing to take the risk and young enough if it fails?
4. Do you have a long term strategy and plans?
5. Do you NEED the cash flow to live on?
6. Don't buy another condo-imo.

Theses are questions you should consider , imo, before you make a decision.

Thanks for the birthday wish and good luck. Rich