Reply to Skipping starter home and buying 4-5BR house?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here. Thanks for the insight, everyone! I think we'll just go for the 2BR home and see where things go. We can afford the bigger house but would rather invest our money elsewhere for a greater return given that the other rooms won't be utilized and dealing with renters seems like a hassle. [/quote]

Again you don't get it.  Buying a 2 bedroom might cost you more in the log run. For example, if you buy a 500k 2 bedroom condo and sell in five years you'll be spending at least 40k to sell (realtor and taxes).  You would have been better off spending 40k more over the course of five years in interest and principle on a bigger house.  You wouldn't have to move and you'd have more flexibility in terms of space.  [/quote]

Your logic is only true if we can't afford he 2nd house without selling the first one.[b] I think we will keep the 2BR as an investment property [/b]when we move later down the road. Having to move is not ideal, but since we are going to buy both homes in the same neighborhood, this seems like the best financial decision. [/quote]

Problem is it is hard to own a profitable investment property in DC.  You kind of missed the boat for buying an inexpensive condo and then renting it out.  Prices have already appreciated a great deal.  One option is to buy in a questionable neighborhood and count on appreciation but you probably won't want to live there in the meantime.  You may be able to rent it out and cover PITI but that still doesn't leave you with that great of a return.  A lot of condos in DC have high HOAs and some have rental restrictions. [b]Also if you earn more than 150k (I would hope you do) then you can't deduct the mortgage interest on an investment property. [/b] You're most likely better off buying REIT shares.  Fwiw, I'm a landlord.

Regardless, you seem to over complicate everything.  First you're saying you'll buy a huge house and have roommates.  That's messy.  Now you're saying you have plans for an investment property and then another home.  Why not keep it simple for your first home purchase?  [/quote]

Are you sure about this bold part above??[/quote]

Yes[/quote]

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