First time home buyer and cash flow

[Sung Woo Kim]

Hello!

I am a new/beginning investor and also a first time home buyer near Sneads Ferry/Holly Ridge area, NC. Not really a great cash flow market (is what I'm hoping to build in the future), more of an appreciation market according to what I've researched.

Because I'm an active duty military, I will be moving to the area (Sneads Ferry/Holly Ridge area, NC) and will be living there for the next two years. I thought buying a home would be a better idea as monthly rental payments will be like flushing down the toilet.

Currently looking for houses in that area and ideally wanting to have my monthly payments to be within my BAH (housing allowance that we get paid monthly). According to my math at 0% down using VA loan, a house need to be around 250K or less in order to make that happen or be close to it. In this crazy market, seems difficult to find 3 bed, 2 bath SFH (which was what I was hoping for). Say I moved to another location after 2 years and try to rent out that SFH property, my monthly cash flow at 0% down will likely be slightly negative.

HOWEVER, if I decide to get a townhome in the early 200K (3 bed, 2 bath), I should be able to rent it out with positive cash flow of approximately $100/mo.

In terms of cash flow and cash-on-cash return, which is what I really care about. Numbers seem to work better with getting a townhome instead of SFH. But again, my limited knowledge is telling me that townhomes do not appreciate as much compared to SFH and I pretty much don't know what I don't know as a rookie investor, so here I am trying to pick up some wisdom and ask for advice and opinions!

Thank you everyone!