Continue to Rent or get started in REI with FHA loan???

[Ryan Mino]

Hello BP,

I'm a newbie to REI and looking to get started ASAP. I just graduated college last May and rent out an apartment.

Essentially, I'm looking to purchase my first property within the next couple of months, rather that renewing my lease which is up in July. I'm looking to use an FHA Loan and "house hack", but I'm having a hard time finding a duplex in the St. Petersburg, Florida area which is where I work and would like to live. Keep in mind I'm a newbie and not looking for something that would need a lot of renovation, maybe just some small cosmetic fixes.

Therefore, I’m having a hard time deciding if I should rent again for another year until I have enough saved up to do a conventional loan with a 20% down payment or to purchase a single family home, live in it for at-least a year, POTENTIALLY find a roommate, and use it as a rental after a year or so.

Currently, me and my girlfriend are paying around $1,400 after utilities every month to rent an apartment. If I were to purchase a single family home, I would spend around $10-$15k with downpayment and closing costs.

Basically, my question is if I don’t find a duplex to live in one side and rent out the other, should I:

1. Continue to rent at about $16,800 per year

or

2. Purchase single family home investing around $10-15k, and pay down my mortgage for a year or so which would prob be a smaller monthly payment than the $1,400 rent. (Potentially fund roommate)

I would GREATLY appreciate all of your thoughts and feedback on this. Thank you in advance for your time and help.