Need some feedback/advice please

[Account Closed]

Hello all! I am a newbie and I originally wanted to start with a multifamily but there's not a lot of inventory where I'm located (Middlesex County in NJ) and other areas I'm considering. Im currently renting a 1BR apartment and every year, my rent keeps increasing and whenever I reach the end of my lease, I feel pressured to make a decision to renew it because I just couldn't find the right timing to purchase a property. With that said, I'm considering purchasing a "cheap" condo to possibly lower my monthly payment and hopefully have some equity within a few years. The extra money I will save monthly will be put towards downpayment for a multi and I figured it will be a bit easier because I won't have the pressure of finding one at a certain time because I wouldn't have a lease to renew. I understand the risks of investing in a condo due to HOA fees associated with it and no guarantee of any appreciation and the association not having sufficient cash reserves (not sure also what is sufficient). I would really appreciate your opinion/feedback as to what I am contemplating. Thank you so much.

[Ray Reed]

What about getting into a roommate situation while you are renting and searching for the right multi?  That should help you save more than if you were buying a cheap condo and it gives you more flexibility.  If you were to get that condo and then look for a multifamily, the financing on the multi family will not be as favorable as if the multi was your first property. your debt to income ratio would not be as good and you would be required to put a heftier down payment on the multifamily.