Getting Started with a owner occupied duplex

[Giovanni Sidari]

Hi everyone - I'm new here, an architect by day, and a wanna-be investor by night. I am interested in the possibility of an owner occupied duplex where I can live and rent out a unit, covering some of the mortgage costs. The plan would be to live there 5 years, create as much equity as possible, then hold on to the property long term, or sell if the right opportunity would present itself.

Given that I HAVE NEVER OWNED or PURCHASED any Real Estate in my life, am I being an idiot for even trying to do this? I'm looking in the 500k range of purchase price.

Does any one out there want to weigh in on this as a first time endeavor?

Am I starting too big?

Can I utilize FHA in this scenario with a lower down payment, since I will be living in the unit?

Thanks Bigger Pockets - So far so good.

[Aaron Montague]

@Giovanni Sidari

Great idea, not crazy at all. Getting into a 2-4 unit property with FHA, or other options, is a good way to figure out if you are cut out for real estate investing. Owning a duplex gives you all the skills you are going to need for local investing.

Here are few other ways into RE investing as an owner occupant:

0% Down:
NACA (https://www.naca.com)
VA Loan (http://benefits.va.gov/HOMELOANS/index.asp)Rural Development Loans (Renovations MAY be included)
(http://www.rurdev.usda.gov/HSF-About_Guaranteed_Loans.html)

3.5% Down
FHA (http://portal.hud.gov/hudportal/HUD/topics/buying_a_home)

3.5% AND Renovations
FHA 203k loan (http://portal.hud.gov/hudportal/HUD/program_offices/housing/sfh/203k)

5% Down

Homepath Owner Occupied