To go SFR or small Multi-Family for my first owner occupied?

[Christopher Nicholas]

Hey BP Community, 

Long time listener, first time forum question. I am using a home buying assistance program that requires me to owner occupy my purchase for below market rates (around 3% interest with $0 down). The program is based around helping families stay in their homes and  maintaining community stability. Should I ever not reside there, the note becomes due (think due-on-sale clause). I've had one co-worker confirm that the program does do a verification one to twice a year. 

I am torn choosing between a condo ($360k - $380k) or a quadriplex (>$950k). There are a couple 1bed/1bath condos in a very safe, desirable neighborhood with all the perks minus a gym. I could very easily see myself living there for 3-10 years before moving into something bigger and renting it out. There are a couple of quad's in neighboring cities that have the slightly above average crime rate, and chances are would need some more frequent upkeep than the condo. My time horizon would be to move out within 2-3 years so I do not have to live next to the tenants and move somewhere a bit safer/ closer to work. There is also a sight concern of COVID-19 and not collecting rent right away, but I do not see that as a long term issue. 

I already have plans for investing out of my high cost area after purchasing my primary residence so I am not concerned as much that my first property won't be revenue generating right away. 

[Christopher Nicholas]

@Alex Olson

Thank you so much for your response! You mentioned the hardest part right now is affording the monthly payment. Most of the places I am looking at are causing me to think twice on an otherwise no-brained. For the most part, if one tenant were to leave the quad my regular income would be stressed, since I am only able to rent out 3, as I am required to live there or have the note called. With this particular environment of high unemployment, and what I’ve heard about inheriting tenants I’m constantly rerunning numbers.