First-time Buyer w/ Goldilocks Complex Seeks RealEstate Therapist

[Daniel Dawson]

Hello there! 

I finally decided to take the plunge and make an account here on Bigger Pockets after hearing many wonderful things about the community and, of course, learning about the forms after reading my first BP book on rental property investing. I'm hoping to meet experienced and open-minded members of the community to bounce ideas with, learn more about real estate investing and for encouragement to start making moves with my hard-earned money. 

I am not sure how common or uncommon my life situation is, so if the title didn't scare you...please keep reading on...

A little about me: 

I'm a 26-year-old young professional with a well-paying job at a tech company In Manhattan. I live in Northern NJ and was commuting to NYC, but now since COVID I work permanently from home and take advantage of the location independence by going on extended trips abroad. (I'm a BIG remote work advocate, so if this is something you're interested in, please reach out!) I want to maintain this lifestyle and ability to travel, as I did in my last position before my current one. I have a decent chunk of money in savings (apart from an $8k emergency fund), no debt, no pets, no kids, no significant other, own my car and have very low living costs for my area (under $1k/mo for a room in a shared house, all included, off-street parking, have been here for 4 years). Happy to share more details and numbers privately!

Why real-estate:

Like Robert Kiyosaki says in Rich Dad, Poor Dad, owning a house is a sentimental choice for many, while real estate investors stress the importance of securing assets, not liabilities. I see myself in the middle and can say that I'd probably be happy with my first purchase being either a house-hacking situation that I would live in and rent other parts of the dwelling out, OR purchasing something in an area I'd eventually relocate to with a tenant already in place, paying the mortgage until they move out and I move in. I'm flexible and open to hearing suggestions. At the end of the day, I see my first investment being a place I'd be comfortable calling home in some respect as well as a "good move". I am getting more anxious with saved money that is not doing anything for me and real estate has always called my attention. I am not looking for a quick buy and sell type property either--I'm keen on holding onto properties over the years and renting them out either short-term/vacation or long-term. I always told myself it was a goal to buy property before 30, but that doesn't mean I have to.

My ideal situation:

I'd love to make a purchase of a condo/townhouse or LOW-maintenance SFR with the intention of using it as a "home-base," renting out rooms either long-term leases or short-term/vacation rentals (even my own room while I'm traveling for 3 weeks - 3 mo at a time). Breaking even or paying less than I do now for rent as a mortgage payment would be great. Making a profit would be even better. My expectations are not to be rich off this first investment but rather not to feel regret, like I made the wrong choice. Long term, I'd love to have a decent portfolio of SFR in interesting locations. My dream is having foreign investments in Spain/Mediterranean, South America, Mexico etc but don't know how feasible or realistic that is. Wouldn't it be nice to have properties to visit around the world and rent out when you're not there?

I'm looking for a domestic home-base in a low to medium-cost area. I'd like to live within 30-mins driving or Uber to a major hub airport with affordable, direct international flights (EWR, JFK, MIA, FLL, ORD etc. are examples). Public transit is a great plus. I've lived in Northeast climates most of my life, and can tolerate and sometimes prefer Southeast or climates that are more hot than they are cold. I need amenities nearby, but nothing crazy like a major city. Small/medium towns and cities are fine. Wholefoods and chain gym? Great! 

Reality/My dilemma:

Enter Goldilocks Complex. I want the "right" investment in the "right" market and the "right" location for me. Like I described above, I live a single and low-cost life currently and have been for the last 4 years. I like to travel a lot and while my current situation supports my nomadic (but with a permanent address) lifestyle, I'm getting older and the shared house situation is beginning to ware on my nerves at times. I'd like the additional flexibility of ownership (modification, a place to make home, renting it out etc) as well as the potential for investment income in the long term. Do I go for a 1BR? Is that a bad investment? Should I cross out SFR homes completely because of the maintenance required? Should I listen to my parents and find a place in a good school district for resale value? Does that even matter if I'm looking to buy and hold? Should I even buy in the first place if renting is giving me so much flexibility now?

Location-wise, I have traveled nearly everywhere in the US that piqued my interest as a potential place to live. Chicago had attractive real-estate prices, but I hated the cold and Mid West. I love California and the West Coast, but it's too far for traveling from and too expensive. Texas is too conservative and boring. I like the diversity and travel connectedness of New Jersey/NYC, but again, extremely expensive. I need to reframe that not every place will be perfect, but I'd like to hear some first-hand experience of people who maybe have been in this situation. 

Markets I'm considering are Wilmington, NC (where my parents live, but lacking major airport connectivity); Miami, FL (perfect global location, but not sure about long term stability); Philadelphia, PA (alternative NE city, well-connected, but too similar to NJ); or Northern NJ (not really a top choice, but if it makes sense...it makes sense)

I'm thinking a 2BR, 1-2BA condo/townhouse under $300k is feasible in some of the locations I mentioned. Think otherwise or want to reframe my expectations? Please let me know!

I'm looking for some two-way dialogue and unique perspectives to supplement the reading and research I do on my own. I need real-world advice and experience from people who are in/have been in similar situations. 

Also, if you've made it this far I sincerely appreciate it. Writing all that was cathartic. I'm not sure if this is the best thread to let it all out, but hey--why not!!

Please feel free to comment below or message me privately! I'd love to hear any thoughts or advice. 

Many thanks.