First Time Investor/Owner in Ultra-Expensive Market

[Wes Franco]

Hello! I joined BiggerPockets today and look forward to networking and finding my way to time, location and financial freedom! I HAVE NEVER OWNED A HOME. Primary or rental.

Here is my current situation:

I'm 27 years old and live in San Diego, CA. I am extremely eager to start building equity and constructing a real estate portfolio, however home prices, in California especially, are at an all-time high. The way I see it, here are my general options:

1. Purchase a duplex in San Diego and live in one unit - PROS: essentially get help paying my mortgage via rental income, proximity to rental property, maximizing FHA loan on a more expensive property (maximizing my down payment in a low interest rt environment) CONS: The market is so unbelievably expensive and rents are not comparatively high enough to really make most moves profitable, high Debt to Income ratio thereby limiting my ability to purchase again

2. Purchase a single family home and live in it in SD - PROS: lower debt to income ratio, potentially lower payment even without rental income. CONS: Market is high, No rental income, not maximizing the FHA loan dp requirement of 3.5%

3. Purchase an investment property in a more affordable market. PROS: invest in an area with a higher rent to home price ratio to maximize profitability CONS: No FHA loan as the creditor would know that it's not my primary (higher DP), greater expense associated with upkeep as I would need to fly and pay for lodging to work on property

4. Buy a foreclosure - PROS: cheaper CONS: seems risky

5. Wait - PROS: buy low CONS: Impossible to time (usually)

I greatly appreciate any advice that the community can give me. I know that any one of these could potentially work with the right deal, but I'd rather do some outreach than take a shot in the dark.

Gratefully,

Wes