New Real Estate Investor needs your ADVICE

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Dear Biggerpockets members,

I want to thank you all for providing insight and knowledge about real estate investing on this site. I am learning something new everyday and am excited to getting started with my first real estate property. I am seeking advice and I hope anyone can help me as I am at a standstill with my decision to move forward.

A little about myself:

25 years old single male

Pre-approved for 100k 3.75% Fixed DHM Loan requiring 3% DP w/ No PMI

40k in Liquid Capital

10k in Savings/investments (can be liquidated if needed)

9k in student loans left

Currently renting home with mother & sister

Monthly Expenses: 1k Monthly Income Saved: 2-3k

My mother has been renting all her life (currently 50yo). After college, I came back home to live with my mother and sister to try to save some money before moving out on my own. After a while of working, I started reading "Rich Dad Poor Dad" and became fascinated with the idea of passive income. Further searching has led me to this BiggerPockets site where I am starting to learn about real estate investing. I love the idea of multi-unit owner occupied properties where the passive income can basically cover your mortgage and even add cash flow. I convince my mother into the idea since she is throwing away money every month renting. I have 2 ideas which could work out. First idea would be to buy a multi-unit property and my mother/sister would rent one of the units while I have tenants rent out the other units. Second idea would be to have my mother buy a single family home for herself and I buy a single family home for myself but with my SFH, I would find rent out the extra bedrooms. After building 2 years of work history, I went to get a pre-approval for a mortgage and began searching for my first property. Here are the 2 Ideas:

IDEA 1:

1311 Belasco Avenue

Pittsburgh, PA 15216

Unit 1: 2 Bed 1 Bath currently renting $850

Unit 2: 2-3 Bed 1 Bath currently renting $750 (Which my mother/sis would occupy)

Asking Price: $130k

Property Taxes: $1900/yr

Insurance: $800 estimated

Estimated Mortgage: $718/mo (Insur/taxes not included)

URL: http://www.realtor.com/#details?property_id=4488961899&rdc_return_url=http%3A%2F%2Fwww.realtor.com%2Frealestateandhomes-detail%2F1311-Belasco-Ave_Pittsburgh_PA_15216_M44889-61899

Note: I have seen this property in person and think it has great potential. I love the fact that the top unit is currently updated and rents $850 a month and my mother and sister could live in the bottom unit and provide me the extra income. In addition, the basement is unfinished and I could potentially turn this basement into another 2 bedroom unit providing more income. The negative of this situation is that the asking price is a little high and I am only approved for $100k but I do think I could get them down to $115k.

IDEA 2:

My mother will buy her own property and I will buy my own single family home in which I would rent out the 2 extra rooms.

2425 Glenroy Street

Pittsburgh, PA 15210

SFH: 3 Bed 1 Bath

Asking Price: $70k

Property Taxes: $1800/yr

Insurance: $400 estimated

Estimated Mortgage: $310/mo (Insur/taxes not included)

URL: http://www.realtor.com/#details?property_id=4132167983&rdc_return_url=http%3A%2F%2Fwww.realtor.com%2Frealestateandhomes-detail%2F2425-Glenroy-St_Pittsburgh_PA_15210_M41321-67983

Note: Basically I would live and rent out the other 2 bedrooms. Mortgage/Ins/taxes estimated out to be $490 a month plus utilities. Thinking if I have 2 roommates each paying $350-400 a month, all my living expenses for the home would be paid for and I could basically live there as the third roommate for free.

From these two properties, there are pros and cons of each but I really need some advice on what to do here. I have been searching for multi-units under $110k but it is definitely hard to find.

Please provide your input as it will be greatly appreciated.

Thanks