House Hack in Washington, DC - Crazy??

[Steven T.]

Hello all, my first post on BP - excited to be here! Been a long time fan and looking forward to chatting with everyone & learning from you all!

I am a first time homebuyer looking to house hack in Washington, DC - born and raised in the area. I am super keen on living in the city but unfortunately any SFH/Rowhouses (a dc term for townhouse) are at least 750K+. There are very few, if any MFHs, in that ballpark in even semi-desirable locations. I am set on living in the city and not 45+ minutes away from the city where prices are still absurd.

The best avenue I have found so far is what I am calling a 'proxy duplex': rowhomes that can be an updown split with shared utilities. I know it is not ideal but based on research and boots on the ground it is amongst the best I can find. A typical layout would be something like a 3/2 upstairs and a 1/1 downstairs. 

Anyways, trying to get some guidance on a couple of key points: 

- Does FHA 3.5% hold any advantages over a say 7% down payment with conventional loan? I have near perfect credit score so I believe I would be able to get this loan.

- Ideally I go in on this alone (hence the question above) but I also have a partner who is willing to put down half of a 20% down payment - any recommendations on how to split cash after I have moved out from this being my primary residence?

Thanks all!

[Steven T.]

Thanks a bunch Russel! That's very helpful & helps me refine my strategy. 

As I am not going after a multifamily, I think I should be set with with the 3-5% conventional loan. By all measures I am extremely qualified for a loan (credit score, income, etc).