Need some opinions: 1 owner-occupied property down... Now what?

[Robert Kohnfelder]

Hey all,

I've checked out a handful of BiggerPockets forums/topics over the past few months, but I just signed up today. I'll try to keep this under a million words. Also feel free to let me know if I'm in the wrong section.

I'm not exactly a total newbie when it comes to real estate and investing, but I'm by no means an expert (I have to google a lot of terminology to get through some of the responses on here, haha). I've always been interested in the idea of investment properties to generate passive income, especially with a bunch of student loans (graduated in 2016) and a job that I currently enjoy, but doesn't pay a ton of money... Anyway, last summer I purchased a duplex in Pittsburgh (Mt. Washington to be exact) with an FHA loan, that my girlfriend and I currently occupy half of. We rent the downstairs out and, financially, I'm thrilled with the purchase to this day. We have a decent amount of maintenance and/or upgrades we'd like to do while we are still living there (add an off-street parking spot on the double lot, repair a retaining wall, etc.), but I've been thinking about the "next step" for a few months now -- and I can't decide what's best, or what options we have.

We are fine with our current living situation for at least another year or more, but I was recently thinking about purchasing another investment property once enough money was saved up for a down payment (I believe it needs to be 25% for another multi-unit). If we went that route, I would try to find something in the Pittsburgh area, since I have lived/worked here my whole life and have a good idea of the area as a whole, to purchase and make a rental property. I realize that we could put less money down if we were to wait for the 1-year mark on our loan and jump into another "house-hacking" situation, but I really don't want to move again until it's a true single family home. After speaking with a few people, it was recommended that I consider saving up for that SFH and then converting my currently occupied duplex into a 100% rental, which is what I planned to do at some point anyway. That way, I wouldn't have to put down 25%. However, I am not very eager to move into a home, nor do I have enough money saved up to buy something up to my standards.

I'm basically wondering what would be the best route to go from here: Save up and buy another investment that I can rent out (like the idea of another duplex) and then purchase our "home" later, OR aim for the home now and worry about adding more investments after settling in and renting out my current property? Are there advantages to each, and if so, which one is more common or recommended among investment pros? I don't like the idea of sitting around for a few more years (or even months) and not buying something in an area I want to work/live in for the long-haul, but if waiting is truly my best option then I'll have to come to terms with it.

Sorry for the lengthy first post here, but I'm hoping I can get a few opinions here. Thanks in advance.