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?

[Pam Schuster]

It seems to me that the lower end SFR in SD have appreciated more than the higher end since 2009 but maybe that was just because the market didn't drop as much for the higher end. I would not invest in lower end SFR in SD now and I would rent but I really don't know about MFR. Best of luck whatever you decide