Duplex or Single-family home?

[Adam Baker]

I am looking to buy my first home with my girlfriend and we want it to be a positive first step into real estate investment. We have little cash on hand and thus cannot afford to buy an expensive property (in Winnipeg, Manitoba). Is it a better idea to buy a starter home and try to "live-in-flip" it or should we max out our finances to buy a duplex and live in one side while saving up for a second down payment to buy a house for us to live in? Any advice is greatly appreciated. Renting is definitely not an option anymore...

[Leng Thao]

I'd highly recommend against "max out our finances". Should anything go wrong, it always does, you'd put yourself in an bind that you may not be able to get out of. That's what I term, "financial suicide"...bad move.

You always want to have extra cash flow left over at the end of every month to secure and grow your investments. If you don't, you've jeopardized your ability to grow. Recommend to minimize your expenses, leverage reasonably, and grow your investments.