Should I buy in Maryland or De and rent out while still living (renting) in NYC?

Feel like I could have a nest egg Property and actually own something while staying in the city.

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Technically you wouldn’t be able to qualify for more advantageous mortgages (5-10% down payment and better rates) that are intended for owner-occupants (unless you are not truthful on mortgage app which I don’t recommend).

So you’d have to go with investor loans with 20% down.

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Good to know!

Property may cost more in DE but taxes will be lower than what you'll pay in MD.

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I definitely would have more money if I put everything I’ve put into real estate into the stock market instead.

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Perhaps a vacation property that you could rent when you’re not using it? The beaches south of Lewes, DE have great rental potential and mostly pay for themselves, even if appreciation is a little slower than you anticipate.

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At some point after some of those massive drops, I decided that - since only congressmen and congresswomen like Nancy Pelosi - can consistently “beat” the stock market, I’d like to diversify my retirement and probably even outperform the stock market, a passive investment, with real estate.

My math is if even my RE property appreciates at historical inflation of 3% over a 10 year period, I’d outperform that same capital (usually >20% equity) in stock market making 6-8% returns over 10 year period - because of leverage.

It’s definitely A LOT more work and headaches and I’ve learned a lot about real estate in my own homes before starting with a rental property. Also, be super careful in overextending yourself on two mortgages (or rent in your case). Sometimes properties don’t rent right away.

My advice: buy something you can manage and stay close that’s within 15-30 min of where you live. Buying out of state to have someone else manage it doesn’t make a ton of sense unless you will in the near future move there.

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