Next Investment: A Primary Residence or Long Term Rental?

[Katie Case]

Hi all! My name is Katie and I am a fairly new investor. My husband and I purchased our first house hack, a duplex, in Coraopolis. We live here currently. We are coming up on a year of owning the property (purchased with an FHA loan), and we will have around $25-$30K saved up in the next month or two to purchase our next one. We are trying to decide what to do next and would love advice from more seasoned investors.

A.) Do we buy a small starter home in Sewickley that we can rehab and add value to? We currently have our eyes on a property that we'd hope to get for around $200K (4 BD, 1 BA with room for a second) and hasn't been updated in a long time. This is an expensive market, and a desirable one, so it is rare to find a property at this price.

B.) Do we buy another small multifamily rental and stay in our house hack for another year? It is worth mentioning we do not currently have kids, but plan to start a family sometime in the next year. Our unit is 1 BD 1 BA so we will likely (hopefully) need more space by Spring/Summer 2024.

I know there is probably no one right answer here, but would love to know what others would do in our situation. Thank you!