Single Family or Multifamily for first deal?

[Branco Theis]

What’s up guys! Please let me know your thoughts about the 3 options I have. I found a loan program that will fully finance a 1-4 unit owner occupied property with no closing costs, no pmi, no fees. Sounds amazing right? Well, the catch is that I have to live in the property for as long as I have the loan, and I cannot rent it out. Here are the 3 options I have:

1. There is a single family deal, 3 bed 2 bath, that I can get off market. I'd be getting it at 80% value because it is a distressed property, but it does not need any major repairs. I can use the loan program to purchase the home, and after a year, refinance, then rent out. I won't be able to use the program again because it is just for first time home buyers, but I can look into other programs like FHA for example, to purchase a duplex, triplex, or fourplex (what I really want to do). Cons include paying the mortgage for a year unless I find a roommate or Airbnb a room, something I'm hesitant of doing because we want our privacy.

2. Skip the single family option and buy a duplex, triplex, or fourplex with the loan program (Again, no down payment, no closing costs, no pmi, no fees, BUT I have to live in it for as long as I have the loan). Cons are what I just mentioned about having to live there indefinitely, and also that I would be getting it at market price (unlike the distressed single family deal I found off market) unless I find an off market multifamily deal. I’m looking, btw, but I haven’t found one yet.

3. Throw that loan program out the window and find a different program, like FHA for example, where I will pay pmi and 3.5% down, but I won't have to worry about having to live in the property indefinitely.

I know it got a bit long, sorry. Just wanted to hear your thoughts! I hope I didn’t leave out any details. Thank you thank you thank you!