Buy My First Home or Multi Family Unit first?

[Shelton Davis Jr]

Buy my first house with a 100% financed mortgage loan from my bank?

OR

Use the mortgage loan which would be 90% financed from my bank to buy a multi family unit? and then eventually get my very own home.

Why or why not?

[Brandon Rush]

Hey Shelton, 

I say start your investing journey off right and go with the multi. Rich Dad Poor Dad Basics Here, the single family will be a liability requiring you to ditch out for the mortgage every month. House hacking the multi will decrease your living expenses significantly, allowing for greater flexibility in your life. Also remember 100% financed, means you will have a higher mortgage balance if you went with your SFR.

I say go the reverse route. Try to find a 4 family to house hack. Then maybe drop it down to a 3 and work your way down to a single family. Even with that single family, try to find something with some kind of value add component to it. Maybe a foreclosure or something off hudhomestore.com, and then house hack that as well. 

You will get your "nice" single family one day, but if you jump right into it for the instant gratification, you may end up kicking yourself in the butt. 

To each their own, I am a sucker for house hacking. I am on my second one now and have gotten use to not paying a mortgage (I use to own a single family but sold it). Its the same feeling as not having a car payment anymore, you feel a bit more free.

Good Luck Shelton!