LA house hack and equity vs holding out for the deal

[Lucas Allmon]

👋 

I live in LA and I know this market is a different beast. Currently I live in a great location with a a low market rental price, but I am renting. 

My wife and I are starting to dig around for deals, though it seems like people are irrationally buying up things via speculation and banking on appreciation. 

I know that a residence is not an investment, but if we house hack with an FHA loan we can keep lower rent in an up and coming neighborhood, and we aren't paying our landlords mortgage.

So my question is it better to get in the game on a house hack that might not completely cover our unit, building that equity while we mine for a deal, or to hold out for that deal?