TL;DR - I am brand new to real estate and am weighing options on buying my first property that I can use to set me up to buy a full rental property in the future. However, I'm thinking how to navigate a less-than-ideal situation and am looking for your expertise and advice.

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I’m looking at my first property at the moment after a personally rough 2022. FYI, I live in Richmond, Virginia.

The hard news: I was laid off multiple times that year so I don’t qualify for renovation loans. More so I had to move back in with my family which is a major shot to personal morale.

The good news: I’ve recouped my cash savings to $20k in a few months! I’ve got a few lenders lined up and am working with an agent. I'm looking around on this forum to find a mentor as well to guide me through the process.

Currently, I'm staying with family in Richmond, VA as a 30M (layoffs hurt!) so needless to say, I'm trying to exit asap! However, I want to buy a house and not get tied into renting. My budget is $250k although I’d like to stay closer to $200k. I’m looking for homes where I can live with a roommate to offset living costs, and would meet the 1% rule when I move out to my next home.

Unfortunately, I’m having a very hard time with this. Most homes I find are in the .7%-.75% rent to purchase price.

So here are my choices as I see them (again, please offer any advice or other choices I may not be considering).

A. Buy a home on the cheaper side that negatively cash flows just so I can move out and collect equity on something using a conventional loan. Then, after a year, I can qualify for a renovation loan for another house, fix that up, and have a positive cash-flowing property. Pro: I have a home and flexibility. Con: I’m not making money on it.

B. Stick it out and hope things get better while stashing more cash away. Pro: Rapidly increase savings. Con: Risk being a 31M living with his family.

C. Rent and hope things get better. Pro: I’m out of my family’s house. Con: I’m losing money and have less flexibility to leave my rental contract.

I personally am leaning towards A. It’s not perfect, but I’m fairly certain I can get my living expenses around $1k living with a roommate and I can bust butt to regain savings to buy a pure rental property.

In addition, we are seeing a huge influx of people from DC, NYC, LA, and Austin. I lived in Raleigh NC a few years ago and saw home prices skyrocket. I don’t want to miss that train here in Richmond.

Thank you in advance for your insight.

Richmond, Virginia

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