Condo or House - Initial owner occupant/HH to investment property

[Owen Ryan]

Hello All,

I am in the position financially to purchase a lower priced home, or a decent condo in the area. I am roughly priced in at $330,000 for a SFR or Condo, and $390,000 for a Duplex based on one of my preapprovals. My goal was to find a duplex to owner occupy, but there hasn't been much on the market within my price range that will pass FHA financing. I am looking for a place I can live for the next few years, build equity and then move out and rent at a positive cashflow. I am trying to figure out if a 2 bed 1 bath house or a condo would be better for this purpose if I am unable to lock in a duplex. A condo based off the numbers would most likely be cheaper on a monthly basis, be easier to cashflow, and be less of a headache to manage as a landlord. However, it seems like it may be easier to add some sweat equity and value to a single family home and I wouldn't have to worry about HOA fees and rules. Would a condo generally appreciate as a SFR would, especially with all the new development happening in the downtown Worcester area. I was also curious as to what that means for what I can get another loan for if I wanted to move and purchase another property (how much would be required for a down payment, 3.5 again or would it go for my second home?). Does anyone have any feedback on personal experiences for them?

Thanks!