Primary vs Rental for First time Home Buyers

[Ram Anand Vutukuru]

Hi Guys, I am brand new to Bigger Pockets. And I have a super fundamental question. I saved up some money over the years and I super conflicted between buying a condo in Bay Area around 550k-600k with 20% down as Primary Residence vs a Single Family home in Austin around 400k-450k with 25% down as investment property. Can you please suggest me with your expertise.

Also, I am a first time home buyer

[Yang Lu]

Ram, if you're single and 25, you have to try to house hack. I started doing that in San Jose around the age of 28, and I only wish I started doing that earlier. If I started when I was 25, I would've been $100K+ richer on cash, and probably 200-300K richer on equity.

If you're a 25 year old with a high paying job, the only thing holding you back from doing this is a down payment. Once you save up enough, you can stretch yourself quite a bit if you are willing to house hack. And honestly, it's the first 2-3 years that are the "hardest" when it comes to supporting a mortgage. Over the years, your pay increases, there's inflation, etc. that will make you look back and say "dam, I made the right choice."