Buying First House While Still Paying Rent

[Lance Middleton]

Hello BP community,

Here is the situation. I'm really itching to get started with an investment property. I'm looking to buy a HUD/Fannie Mae forclosure paying 3.5% down. The issue is I'm only 2 months into a 12 month lease. I'm paying $600/month for my current apartment. I want to take advantage of the owner-occupent low down payment and option to do a live-in flip which requires me to live there for two years. I'm in a good market and would hate for an owner-occupant bid opportunity to slip by me simply because I was waiting for my lease to end. Anyways in the next few months I should have enough cash to have the option to buy something and I was wondering if I'm completely crazy to attempt to purchase anything while still paying rent for my current place. Based on some properties I've looked at the mortgage/insurance payment would be about $500-$600 so combined with my rent I'd be paying around $1100/month. I know this question depends on a lot of different factors but I just wanted some opinions from the BP community. Advice from a local loan officer said I'd still qualify as an owner-occupant even if I am still paying rent. I make a decent wage from my job and live pretty frugally so I could afford it while still have the ability to save/use my earnings for repairs/rehab.

Thanks guys!