First Investment

[Chance Monteith]

This is my first ever question posted to BP!

Anyways, by the end of the year, I plan on purchasing a multifamily property to house hack. My brother and I are going to live in a unit, and rent the other(s) out.

My question is, in your personal opinion, what type of property should be a first purchase? Should I plan to buy a Duplex, Triplex, or Fourplex? I understand there are more factors that can go into making a clear-cut decision, but right now I just want to know your advice, assuming I'm able to afford the fourplex.

Another question: I have found a small complex composed of townhouse units, and a seller is selling 4 of these, 2 bed units together at $175000. 

Are these type of units considered to be the same as a fourplex,  or something else? I'm not sure how to describe the complex they're in, as they are townhouses in an apartment-style area.

[Aaron Smith]

Look into FHA financing, its 3.5% downpayment. They also have their FHA 203k program, which finances renovation costs into the loan, still with 3.5% down. If you go that route, you can save the other money you have for other investments. Its a great way to avoid paying rent, and have tenants pay your mortgage for you. Max is 4 units for an FHA loan.

I did a 4 unit FHA house hack about 5 years ago. Its not too bad filling those extra units, just follow the tenant vetting advice on this website. I would personally go 4 unit. If one tenant moves out, you only lose 1/4 of the property income, so its much safer.