Primary Residence -> 3/2, 2/2, or 1/1?

[Rick Alvi]

Hello,

I'm going to be honest. I don't currently know much about real estate investing nor what is a good "deal" for buy and hold...I'm looking to buy my first primary residence single family home, though, this year. I wish not to "buy a bad deal" but I also wish not to be "stupid" and buy a more expensive 3 bd 2 bath if the numbers don't make sense to rent it out "eventually" with the higher interest rates we see this year & hot market here in Houston. I can find some 3 bd 2 bath 1980's homes for around 130k that seem to be in decent shape in the suburbs and can find some 1 bd or 2bd homes for about 100-115k. A lot of houses are being sold for above asking price now a days. The good news is, I get to take advantage of first time home-buyer loan options with a lower downpayment... 

I'm not sure if I should buy a cheaper 1 bedroom or 2 bedroom place for me to live in for 5-10 years of if I should go ahead and bite the bullet to purchase a 3bd 2bath with hopes of one day turning it into a rental (because 3 bd 2 bath make the most sense for rentals from what I've gathered). Any suggestions for me? I currently rent an apartment, am a single man with no plans of having a family... and it would be nice to own a home... live in it.. learn about home ownership... and eventually gain knowledge about passive income rentals as I live in the home. 

-Rick