Invest in SFH in Ventura/LA or just FOMO?

[Yee Ting Wu]

I am very new to real estate investing and would like advice on whether now is the time to invest in a SFH or am whether I am simply riding the wave of FOMO from the crazy rise in home prices and rushing to buy? My parents have been trying to convince me to buy a SFH in the Thousand Oaks, Westlake Village, Camarillo, Newbury Park, Agoura Hills, and Oak Park areas. They have been extremely generous to offer up the 20% downpayment as well which I am extremely grateful for. While I idealize the BRRRR methodology and finding a multi-unit property that I can house hack and create cash flow, the area has a lack of inventory. That said CA has historically been a good place for home appreciation in the long term especially now with home prices going crazy and bidding wars on every house. While I do feel housing prices are excessive at the moment and a correction is on the horizon the looming rising interest rates plus the lingering lack of housing inventory make me think that now is the time to invest.

I have been pre-approved for a jumbo loan for a purchase price up to $1.5 million at 3.5%. We've identified 3-4 4+ bds 2.5+ ba and 2600+ sq ft single-family properties with potential. I could cover the PITI myself but I'd prefer not to constrain my budget so we are considering the following 2 options:

1) Have my parents move in with me and rent out their existing property to cover part of the PITI with any profits from the rental. We expect rents to rise as interest rates go up and people fall out of the home buying market and instead elect to rent (is this a correct assumption?).

2) House hack and find a roommate to cover part of the monthly PITI

What would you do in my situation? Is now the time to act or should i wait for a correction at the expense of a higher interest rate?

PS.  I have explored the idea of looking for multi family units in the greater LA area as well but a the margins would be very tight or not work at all from my initial calculations.  Lacking experience and without a team yet while also under the time pressure of rising rates, I've turned my attention toward single-family homes.

Thanks in advance,

Yee Ting