Getting Started with 3 1/2% Down?

[Michael D.]

Hi All,

I am a 25 year old college grad who is currently working full time, and interested in getting started with Real Estate Investing. From what I understand, first time home buyers can purchase a home with as little as 3 1/2% down. I am interested in buying a multi family home to hold on to as a rental property, and hopefully acquire more in the future. I have been told by a friend that there are a few requirements when taking advantage of the first time homebuyer 3 1/2% option. I believe they said I must live in this home for at least the first year.

If this is not the case, I am hesitant to "use up" this one time option. I feel that I would possibly want to use this for a home where I will plan on living myself. But then again, maybe this investment will allow for a bigger down payment down the road. I would like to get started as soon as possible, and im sure I can come up with the 3 1/2% immediately.

On a side note, I still live at home with my parents, and have monthy expenses of about $800.00. My income is around $3200.00/month.

Any input would be greatly appreciated!!