Beginner: multiple doors or play it safe

[Nathaniel J Mott]

Hey BP,

I'm looking into purchasing my first home sometime around the beginning of the new year. I'm waiting a little while to see how this "no-eviction" policy plays out, and further educate myself.

I have almost 70k saved up and a 760-790 credit score. If you were in my shoes, how would you proceed? 

I originally thinking I'd only try to buy one property and go with a conventional loan. I'm going to house hack a duplex or single family home. Now I'm considering using my FHA loan to put less money down, still house hack that residence, and use my remaining money for a down payment on a rental property. I live in Raleigh and would like to invest close to home. It appears to be mainly a flippers market here. I'd like to do some renovations on whichever property (or properties) I buy and try and obtain at least some cash flow.

[Aaron K.]

Either is fine, if you house hack with FHA it is possible you don't cover the full mortgage but your out of pocket is less than you would be paying otherwise, considering that you can get decent stuff for $250k out there $50k-$60k is probably what you need for a down payment, also make sure you have sufficient reserves for when things go wrong.