Advice for first time investor

[Darcy Dawe]

Hey guys,

I’m currently trying to buy my first property and it seems like I have 2 options at the moment. First being more expensive home located in a booming area that is very sought after. This home is only ~10 yrs old and will rent right away with little work. Second option is a home, almost half the price that will need a bit of work, that I am capable of doing myself over a few months. The second home will most likely bring in a bit of cash flow after expenses where as the option one home will only break even monthly. Should I go with the cheaper home to leave me with more money to go towards my second property? I am planning on house hacking this first home.

Any help is appreciated as I’m looking for all the guidance I can get! Thanks.

[Ladeg Mulb]

hey Darcy , let me throw in my (inexperienced) two cents:

I recently bought my first rental property which is quite similar to type one that you mentioned. Extremely hot market, where rents just about cover expenses. The problem is, that although I believe the house will appreciate a lot, it  tied down my capital, and made it very hard for me to grow my portfolio without cash flow. I think the right thing would be to go with the one that cash flows. That being said, make sure you’re covered during the time of rehab which always takes longer than expected.

best of luck!!