Multiplex vs. Single Family Home as first purchase?

[Adam Eaton]

My wife and I live in a relatively competitive market. We have been looking at purchasing our first home for quite some time now, but everything in our price range gets snatched up before we have an opportunity to make an offer. It is not uncommon to have a primary offer and a backup within 12 or so hours of listing. 

That being said, we started to look at a near by market with properties significantly cheaper. It is still a strong market, but the entry price is much lower than our immediate market. Because we do not want to end up out there for too long, we thought about purchasing a multiplex (two-four units), so it could easily roll into a cash flowing investment property, and could help us to get into a home for our family in the market we want to be in. 

I am looking for opinions on the prospect. My real estate agent thinks it's a great idea, and many folks we know are buying investment properties out that way. What do you think about the first property we buy being a multiplex instead of a single family home? 

[Samantha Klein]

@Adam Eaton Buying a multi-family for your first investment is a wonderful idea, and I did the same thing. I actually am house-hacking right now and plan to until I am done building my portfolio. I'd go with a 4 unit because you have more units to rent. Just make sure it cash flows well as with any purchase.