First Purchase is 2 SFHs

[Nancy Moustafa]

I'm looking to buy two SFHs on one plot of land about an hour out of Washington DC. I'll love in one unit and rent the other. The rental is a 2br 1ba with a large den than can be a 3rd bedroom. The mortgage is a lot for me to pay on my own so getting it is dependent on having the second unit rented out. 

Would you make your first investment a property you couldn't afford to pay for on your own? I'm nervous because this deal means I'll become a landlord overnight and I have no experience. I'd love to hear your advice. Living in the DC area means I can barely afford any home up closer to DC, hence looking at hour out. And finding a duplex is almost impossible up here so I feel I shouldn't let the opportunity pass...but at what cost?

Thanks in advance!

Also, if anyone invests in the DC area, feel free to connect. I'm looking to make some local real estate friends.

-Nancy

[Tchaka Owen]

@Nancy Moustafa - to better help us, you should provide numbers. For example, how much are the properties, how much will one rent for and also where is this? Landlord-tenant laws are different in VA than in MD.

The good news is that in the DC area, most tenants are good. The economy is strong and you tend to find responsible people with good credit. People working in sensitive areas of the federal govt cannot get blemishes so they'll be good tenants. The bad side is that homes are very expensive there (I'm from Arlington and have seen the increase in prices).

Also, it is my opinion that you are better off having a 2nd house rented out and having someone help you than if you didn't. An important thing to do is to set aside money for emergencies....whether repairs or a month or two with vacancies. Also, when you do get a tenant, don't use all of the rent for yourself. Make sure that every month you set aside a percentage for vacancies, maintenance and capital expenditures. Everyone is different, if you put aside 20% for starters, that's ok. Zero is not ok.