First time buyer thinking of investment property or home purchase

[Amy Gardner]

I have a fair amount of cash saved up for a down payment which I have pondered about using to buy an investment property with my father who has very little retirement savings/plans. I am thinking we could buy something together for around 120k in GA and rent it out, hopefully covering the mortgage and then in 10 years, when he needs the money, and if markets are agreeable, we could sell and that would help both of us out, especially him. My issue is this: I live in CA and can not afford to buy a home for myself out here, which I would ultimately LOVE to do. I do have the money to purchase in GA, but since I would not be living there I would not get the 1st time home buyer's interest rate. I can't decide between waiting and saving another 10k (or 20K) to buy out here in CA where the prices have never been higher or put my money to use in GA while I save, giving up that 1st time buyer's sweet interest rate. My father can not live in the rental because I want to keep it in my name only for various financial reasons. Any insight is greatly appreciated!