As population grows, housing demand increases, driving rents higher.Rapid and Sustained Appreciation: Not all cities with growing populations appreciate rapidly.

Quote from @Duane Williams: We’re a family-owned fix-and-flip company operating in San Antonio, TX, and Northern Virginia, managing everything in-house—from wholesale acquisitions to rehab & construction (with our own project managers and crews) to listing & selling through our licensed brokerage. 

I'm from Leesburg, and I can tell you—multi-family is a solid choice (piggybacking the previous comments which I agree 💯), especially with that live-in/rent-out, house hack strategy.

I house hacked then rented it out after a year.

@Jerry Velezstrongly recommend against doing this.start with a house hack instead.make it your mission to house hack.did i mention house hacking? 

Because they cannot afford the house or mortgage payment, and in many scenarios the rent payment is going to be the same or more than the mortgage payment.

Does he want to use the house?

Or find a deal first then market it to buyers, then offer on the house and create an agreement with the seller & buyer?

If you want less leverage simply put down the funds you would use to pay down the 6.4% rate on the new property so you are at say 60% loan to value on the new house.

What I'd like to do is help homebuyers achieve down payment assistance, use a 203k or HomeStyle and potentially house hack as well.