First Purchase: Single Family Homes OR Multi-family Home

[Ashley McCall]

I'm looking to buy my first home by the end of this year or the beginning of next. I have good credit and some money saved up. 

My question: As a beginner in real estate investing and never owning my own home, should I invest into a single family home, repair it and then rent it out or should I invest in a duplex fix it up and rent one unit out and live in the other?

Currently I'm living at home with my parents no bills just a car payment and a small school loan that I am paying off and will be done by the time I make my first purchase.

I plan to put 3.5% down and finance the rest.

I would like to know the Pros and Cons of both. 

Please help!

[Jeff Brower]

You must live there for one year if purchasing using an owner occupied FHA. I recommend going the 2/3/4 unit route as you will only need 3.5% for the entire purchase. If you buy a single now using your one allowed (at a time) FHA 3.5% down loan, you would essentially need to come up with at least 20% down on your next purchase unless you were to refinance your first purchase into conventional and then get another FHA 3.5 down loan. This will take some extra work and cost more in the long run. You can maximize your leveraging ability and get a big head start if you go multi from the get-go.

As far as someone hurting themselves, search for 'umbrella policy' on here and you will find your answer :)