Buying our first home

[James Crowder]

My wife and I are trying to purchase our first home. We are tired of renting and are ready to get a place of our own. I have contacted a real estate agent and started looking at the mls listings and today got approved for financing. I found a local bank that will give me below 4% fixed apr with a 3% down payment and no PMI.
I can only get this loan if it is a single family home but we were thinking about a multi-family and renting out part of it. I am also eligible for a FHA loan which would allow for up to a quadplex but as I don't have much of a down payment would have to pay PMI.
My thought is if I can get a single family at a great rate and cut my rent in half by purchasing a home, I have already created myself positive cash flow and I may be able to save for another property that is not attached to mine to rent out. I know there is some creative financing deals to be had and having a mortgage is only going to help build my credit if I continue my good payment habits.
Does this sound like a good plan? and What should I look for in a SFH that would show it is a good deal? Should it be priced at 70% of comps?

[Simon Campbell]

James Crowder:

Find a SFH that you and your wife will enjoy living in. I say this because you mentioned "a place of your own" vs an investment property. As an agent, this tells me that you're looking for a home you can occupy, decorate and enjoy.

If you've been able to pay your rent on time all this time, keep this in mind after you buy your home. Instead of spending more every month because you're saving money buying vs renting, simply save the difference every month. This will help you save money for a down payment and other costs on an investment property later. For now, just take advantage of the low home costs, because they are increasing now. Get a deal on a GREAT home while you can.