First Investment Guidance Needed

[Myrna Santos]

I'm 25 years old and currently live in the SF Bay Area at home with my parents, taking advantage of the free rent while I save up for my first purchase. Would it be best to first purchase my own home where I will live, or an investment property? Ideally, I'd like to househack with a duplex, triplex or fourplex. Where might be a good place to start to determine how much more savings I might need or other financing options?

[Brent Coombs]

@Myrna Santos, if you multiply your current savings by 28.57, theoretically, THAT'S the value of property you could afford to apply for under FHA-approved owner-occupied Lending guidelines*.

* (I'm not sure of extra reserves they also force you to set aside, which could change the multiplier).

ie. You're only asked to put down 3.5% deposit, so long as you live there for at least a year. The same can be for an SFR, or up to a 4-plex. Of course, your income would need to justify the loan.

If you don't NEED to borrow as much as 28.57 times your savings, all the better!

If you can find something that's undervalued - better still! All the best. Welcome to BP...