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Updated about 8 years ago on . Most recent reply
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Decisions, Decisions... Advice appreciated
Hi BP,
I have a few scenarios that I would like to run by you... So I purchased my first investment property in Washington DC in the fall of 2016. I currently have it it rented out ($3,750/month, PITI= $3,150) but tenants are now breaking the lease and leaving December 18th. I am currently renting a 1 bed/1bath unit for myself in a high rise apartment complex for around $2,400/month (rent, pet fee, water, trash, sewage, utilities, and cable.) my lease is up February 1st. I had planned on purchasing another condo, in Washington DC to house hack, as I have a roommate that would be paying $1,650/month in rent. In order to purchase this unit I would use a lot of my liquidity that I have been saving up to purchase more investment properties ($25,000). My question is which scenario would be best:
1.) Continue to find a tenant for my current rental, even if vacancy is longer and continue to pay $2,400/rent and potentially have to cover the PITI on my current rental.
2.) Live in my current rental (3 bed/3 bath), with my roommate, he pays $1,650 and I pay the remainder of the PITI ($3,150-$1,650= $1,500), and potentially find a 3rd roommate for the third room. This saves my $25,000 and I can purchase a few more investment units.
3.) Purchase a second condo as primary residence using the $25,000 as down payment, roommate pays $1,650/month, I would pay remainder of PITI ($3,000-$1,650= $1,350.) Have to cover PITI on vacant unit until tenants are found.
What do you think would be the best scenario for the next step in my investing career?
Thank you in advance!
- Cassidy Burns
- [email protected]
- 540-960-1507
Most Popular Reply
I wouldn't buy another unit until your own housing situation is settled.
That being said, unless there's a good reason not to, I'd move into the 3/3 with two roommates. You'd only need 3rd roomie to pay $1500 to cover PITI (would go for more if possible) and you'd be on the hook for heat & utilities which are likely to be a lot less than current housing costs of $2400/mo. Could imagine saving $1500/mo or better to add to the $25K so as to be ready for the next investment opportunity.