Got FHA pre-approved - now what

[Raju Pothuraju]

Hi all,

I got pre-approved for FHA loan in VA. My strategy is to house hack. I did the same thing in SoCal by renting out a room but that was at the peak of the bubble in overpriced area.

Now my plan is to get a single family home and rent out a room in basement to a friend. 

FHA loan 400k monthly $2467 taxes PMI insurance all included.

Rental market for single family home is $2200-2400

One room rent is $700

This would be a buy and hold compromise between being a pure investment property  and having an overpriced primary residence.

Does that seem like an OK investment? My concern is sustainability and scalability to expand my Rei portfolio with this mammoth loan that fills up my debt to income ratio. 

I am thinking this might be one strategy for those living in a high price areas.

Any input?