Buying my first home in Seattle - advice needed!

[Tiffany Kung]

Hi everyone!

I'm new to BiggerPockets, and am looking for some advice!

My husband and I are looking to buy our first home in Seattle, and in neighborhoods with good access to shops and restaurants. Our initial plan was to buy a house and live in it for 2-3 years, then rent it out, and move to a second home.

The challenge I'm running into is that the neighborhoods we like don't seem to offer good investment opportunities. I used the 1% rule and calculated GRM of a few properties we found on zillow, and the numbers just don't seem to work.

I'm not sure what the right next steps should be, but I've considered a few scenarios:

1. Buy a single-family home in a neighborhood we like; at least our $$ is building equity in our own home rather than going to rent. We then save up, and buy a rental property later on.

2. Buy a single-family home, and rent out the basement to help pay down mortgage.

3. Continue to rent, and buy an investment property elsewhere. I think the rent will likely be higher than the cash flow we can get from the investment property.

I'm new to RE, and appreciate any advice you may have.

Thanks so much for your help!