Greetings from Utah! Multi-unit for first home.

[Scott Bishoff]

Hello everyone out there! My name is Scott Bishoff. I am living in Salt Lake City, Utah and would like to get a multi-unit for my first home. I recently finished graduate school and now work as a mechanical engineer, so I finally have enough income to purchase a home......yay!

Originally I wanted to purchase a nice home that we would pay off over 30 years, but began to realize that there may be a better use of $250K than purchasing a traditional home - with the idea that if I sacrifice now, I will be able to live like no one else in the future. This is what led me to real estate investing.

My idea is to purchase a multi-unit property where my family can live in one unit and rent out the other to get started. I imagine many people have done this. I would love to talk to you about your experiences/advice with this strategy.

Ultimately, my goal is to have enough passive income to cover my living expenses which is ~$3k in the next 10 years.

What are your opinions out there? Is it better to purchase a single family home that I can rent out in the future, or get a duplex and live in one half?

Thanks for your help! I am excited to hear what you have to say.

[Mehran K.]

Welcome to BiggerPockets @Scott Bishoff! I'd say given that your goals are to generate passive income, go with the duplex! I did a similar thing by renting out the spare rooms in my primary residence (I'm single). In your case, with a family, I'd say the duplex will achieve the same thing. Many investors have started this way! The extra cash flow helps big time when it comes for saving $ for down payments towards other purchases.

When you decide to move out of the duplex one day, you can just rent out the side that you were occupying. This way you'll have two rental units, with cheap low interest 30 year owner-occupied financing in place.

You'll also get some hands on experience at being a landlord. Renting out my spare rooms definitely got me familiar with the process a property manager/landlord goes through (paperwork, showings, background checks, collecting rent, etc.). That education is golden.

Some downsides I can think of are: Having to live next to your tenant (potential for hassle), and having a "little" less of a buyer pool interested in the duplex when you want to sell (vs. a SFH).

Hope that helps :)