Purchase MFR, SFR, or rent?

[Bud Dwyer]

I'm in a bit of a conundrum here. I'll be moving back to SD in May for work. Last year when I knew it was a possibility I started looking at buying a MFR, and living in one of the units using an FHA loan. I've been approved up to $1.17M since then, should I chose to go that route. This year it looks like the prices have gone up $200k on the remaining MFRs that I can find. I don't think those prices are sustainable anymore. If I buy one of the buildings I'm looking at, I would be paying around $1,500-2,000 a month if I lived in one of the units.

The SFR residences I'm looking at are about the same monthly payment wise. Instead of the $700k-1M range, they are about $300k. I would still be paying the same monthly payment as a MFR.

The thing is, I lived through the recession in SD, and I saw what happened when the bubble burst.  I got my first place in 2009 for $80k(Previous owner paid $256k for it in 2006)  Because of this I'm thinking about living in a rental, to wait out the market.  If I go this route I can continue to build up my savings and keep investing in MFRs Phoenix.

Anyone in SD that is more familiar with the market want to tell me I'm crazy?