First Property Suggestions + Where to Live

[D Chandler]

Hello,

I am a new 28-year-old investor looking to buy my first property in SoCal area but need a place to live. Currently renting a room in Carlsbad and work in Carlsbad area with the option right now to WFH.

San Diego housing market is so expensive so I'm renting a room month to month while saving for a property.

In your opinion should I buy a house in the San Diego area (Escondido, Vista, Oceanside) with the goal to rent out the other rooms to pay for the mortgage or invest in a property OOS (Alabama, Texas, Arizona) or stay nearby for my first rental in Temecula, Murrieta, San Bernardino, Riverside etc and continue paying monthly rent in San Diego. 

I have been looking hard at Lake Elsinore, Oceanside, Escondido, and Vista, closest to my budget and quite a drive but the distance is worth the sacrifice, just more concerned on the area and if it can eventually cash flow renting rooms or the whole property.

I have 110K for a comfortable down payment, but want to limit risks as this would be my first property and I still need somewhere to live. I have a small budget for repairs and excellent credit.

Thanks in advance.

[Twana Rasoul]

@D Chandler if you want to make the best decision, limit your risk and get the best bang for your buck, then buy a duplex to owner occupy using an FHA loan to put only 3.5% down in San Diego. You will have low cost of housing and at the same time have an investment property. Even if you buy a $1M duplex that would only be 35k down so you still would have the majority of your total capital still left over. As long as you buy a property that makes sense as a long term hold then you will be happier and wealthier in the long run.