After analyzing the local Mercer County market I've noticed there are not that many MFH that are desirable meaning cash flow can occur, but appreciation, schools and good tenants will be at risk. Granted MFH are more common in rougher parts of central jersey and my purchasing power can't acquire me something in North Jersey here homes are much more desirable when it comes to appreciation and schools and safety. In addition, I live with my parents so even househacking will still cost me over $400 a month, which is what I pay to stay with my parents.
My question is should I stick to a SFH in my local market in a good area or South Jersey? My purchasing power can afford me a house down there and I also work in South Jersey (Cherry Hill) and live in central jersey. What's at risk is it may not cash flow and renting is not so common in South Jersey, but I would feel more comfortable investing in a good area where schools are decent to good, and tenants are likely to care more. I would then plan to use this forced equity (since I plan to buy a fixer upper) to invest in another home.
I have been constantly reading to househack right into the MFH, but this may take some time for me to acquire the money and purchasing power. Are there better ways to funding this? The current leverage my family has is their home equity, but I honestly plan to invest within the next year due to capital shortage. I have ALSO heard its not about timing the market rather time IN the market, so this is where a SFH could potentially be "easier" to find.
Im constantly in a headspace where I tell myself I have to get really creative to finance a MFH or come in with a 5% conventional loan and fixing a MFH to force appreciation although cash flow may not be there the first year or two.
Similar with a SFH: I can at least get in the market with a 5% conventional loan not expecting cash flow but hoping appreciation will help me out in the next 2+ years and I will at least be able to put up the remainder of the expenses since I do live with my parents.
I am young so I could be overthinking, but my end goal is to have a portfolio where I can cash flow enough within the next 5-15 years to let go of my job (5k clean a month). Im 23 and will continue to work until 30-35, and by then I would be able to either continue working BY CHOICE rather by necessity.