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I'm a single, no kids, early 30's guy with 20% down looking to buy, and have been for the better part of the past year.
However, homes near my place of employment are very expensive, and to get a home I'd feel comfortable buying, I'd be looking at an awful commute (Washington DC area). I currently rent a small apartment that meets my needs (garage, washer/dryer, close to work), and could meet me needs for the next year or so.
What would be the best use of the 20% down I have (about 100-110k) sitting around?
Any home I buy with it to live in will result in a commute I'd be unhappy with. If I invest in stocks/mutual funds, I'd be at the mercy of the market if I want the cash back at some point to buy.
Would a rental property make sense? I am a handy guy and have some experience working on homes.
If in another year or two, between pay raises and equity built up in the rental, would a bank give me a second mortage with a track record of renters?
If you can find a rental property that makes sense, go talk to a local lender. How many units are you thinking about, under under 5?
It will be very difficult to get a second mortgage secured by the investment property. If you mean get a new 1st mortgage on a new property, yes it will be easier, but you still need the down payment. You could do a cash out, but that conventional on units is at 70% right now. You'd need a bit of appreciation before being able to pull out any money.
What about buying units near your work, does it add up?