Am I pivoting too much or am I just learning as I go?

[Cameron Goodall]

This is my first post (other two are replies), and I know it'll be lengthy, so thank you if you stick through my story, goals, and questions.

I have been doing a ton of reading, listening to podcasts, scouring BP forums, and looking at home prices in my area. I'm new to living in NC and have had the goal of buying my first investment property for about a year at this point. I finally feel ready to start taking action. But it's TOUGH in this market, especially Charlotte and northern SC like Ft. Mill/Tega Cay area. Here are where my goals began: 

Primary Goal: Buy a small multi family in NC/SC (Charlotte is right on the border) and house hack. I don't care if it doesn't cash flow and I have to shell out a few hundred to live in a unit. Ideally I pay nothing, but I thought that was realistic. Anything to help me build on my savings so I can rinse and repeat either with another duplex or a SFH after a year or two.

Backup Goal: If I can't find a small multi family, I'll purchase a SFH to live in. I'm okay with minor cosmetic repairs. Anything to get my feet wet and give myself an opportunity to experience how not only buying property works, but how light rehabs work too. I need to find somewhere where my mortgage payment will be less than my current rent so I can build on my savings if I go this route. I'd force appreciation or hopefully see appreciation do to the area growing during the year or two I live there, and then rent it out or sell it, whichever makes more sense at the time so I can continue to buy more in the future.

As I've learned more about the markets I'm interested in, the first issue I found was that my ideal market (Charlotte) is super expensive, no multi family are available (apparently they weren't easy to build until recently bc of the city?) and nothing pencils as a rental that isn't in need of serious rehab, which I cannot afford significant repairs and cosmetic improvements right now. I switched my focus then to South Carolina. Still, no multi family homes in good enough shape to move in to a unit immediately and rehab the other or even both. So, now I'm leaning on my backup as a primary goal. 

I've started searching for SFH. I have a real estate agent I've worked with who helped me move to the area and is incredibly kind and helpful. I've called a few lenders and landed on one that's gotten me pre-approved for a loan so I know what price range I should look in. Since I'm a first-time home buyer, I can put low money down without going the FHA route, but with the amount I plan to put down, I have to search for lower-priced homes, which just aren't abundant in my top two counties/markets I'm searching in. It's not that they aren't there, but any decent one goes under contract extremely fast. The ones that have stayed on the market that I'm interested in come with some skepticism as to why they're on the market for so long. I still need to tour and get an inspection I know, but I'm in the searching phase as of now.

Backup Backup Plan: Due to the lack of well-maintained or minor rehab needed SFH in an area I'm comfortable in, I've started looking to adjust my search to town homes with the intent of living in it for a year before renting it out and buying another townhome/SFH to move in to or rent out the new home and remain in my first home. Townhomes are much more affordable. I can get a lower mortgage payment even with my money down that will help build my savings, and many of the town homes seem to be newer/renovated inside. My understanding is they don't appreciate as well as SFH, and the HOA may restrict them being a rental. I'll have to do due diligence before I purchase to make sure I have the freedom I'm looking for with it. I know to expect an HOA and PMI with this new focus I have, but it seems to me this should be my focus with SFH being a 'nice-to-have' backup plan to this one now. I'm not in a rush, but I'm eager to take action.

Here are some questions I have about my current search and approach. Any advice, connections, encouragement, etc. is much appreciated! 

- Are townhomes a good investment in terms of looking for appreciation and/or rentals? 

- What are some cons to Townhomes that I may not be thinking of? There must be a significant reason to them being more affordable but well maintained aside from the fact you share 1 - 2 walls with strangers. 

- Am I caught in a loop and not taking action out of fear, or does this rational make sense to someone more experienced?

- Is my initial goal and backup something I should stick with, or am I just learning more as I begin taking a step further than reading books, forums, and listening to podcasts? Did I make the right pivot in mentality?

- Should I even be looking right now, or wait an additional year to build up savings even more, forcing me to rent another apartment in the meantime and not own anything?

- Do I suck it up and find a home that needs slightly more rehab than I initially wanted (I have minimal to no experience with this) and build sweat equity and learn, extending my initial timeline? 

There are likely more questions I have and more clarity I can provide if you have questions for me, so I wanted to make my first post something thorough that would hopefully gather some experienced eyes and maybe even resonate with others who are in my shoes in the same or other markets. Thank you if you made it this far, and thank you if you decide to add to this discussion!