I'm saving to purchase my first property, and it will be one that I live in. I really want a 2 family home, but prices are insane right now (thankfully I'm still saving for another year). I am torn between the following options:
2 family home, rent 1 unit out and live in the other - $500k+, $600k+ probably more realistic with $1800-$2400/mo rental income for 1 unit.
Buy a Condo - $300k (estimate) for a 2bed 1-2 bath
Single family fixer upper - $200k-$250k+ +repairs/improvement
Finances:
$100k down payment, but can save longer @ $2.5k/mo if necessary. Can get some family assistance if needed.
If Condo/Single Family, want total monthly expenses $2k or below.
Dilemma:
I could get away with a condo, but the majority don't need work, so it's tough to build sweat equity. Ones that need work are in crappy buildings.
Single family would be fun, but there is another house ready for me when I settle down/have kids in an area with great schools, so I need to think about the investment qualities of whatever I buy.
2 family would be ideal, and I am familiar with the legwork required to rent/deal with tenants. I have my real estate license, have done rentals, and my family personally owns 4 buildings that are rented out in a blend of residential and commercial.
Any suggestions for how to decide which route? Although I have my preferences, I think I could be happy with all 3 options. Right now my current strategy is to have the cash in the bank, then go with whatever presents itself as the best deal. I want something where I have the option to rent out a room or the other unit, enabling me to buy slightly more than would make sense for just me alone.
As far as a fixer upper - I am handy, have family for masonry, handyman stuff, plumbing, electrical, can get flooring materials very inexpensively, and really want to be able to work on something.