@Skye AndersonSkye, I reccomend buying on performance, not on speculation.

If you buy the single family and IF it goes up in value, then so wIll the cost of a duplex, unless you do a value add / fixer upper Most ppl here won’t bank on speculating or appreciation.

Most consider betting on appreciation is speculation not investing.

I have not talked to a bank yet but I am sure they may look at my cousin and I with speculation.

In very simple terms, unless your properties cash flow you are speculating, and you need to be prepared in the event that the housing market sees a downturn.

Jay, that is a good observation - BP has been drumming for cash flow, because they have realized how many people speculated on appreciation and lost everything.

Just some speculation here but if you found a two unit property - duplex or two houses on one lot or a house with a detachable mother in law suite or something like that you might be able to purchase that property and then use it for both primary and investment as long as the valuations work.In the 1031 you need to purchase at least as much investment property as you sell. 

Yes, if zoning etc lines up you can turn a SFR into 2-4 unit.Most 203k loans that are ACTUALLY CLOSED (& not just talked about, speculated about, or part of home purchase offers that are simply thrown in the trash, etc) are refinances.

But since we are speculating, I will throw one out: Between the impending light rail expansion, University of Washington Tacoma campus expansion, more affordable home prices (compared to most of King county), and added amenities (e.g., Ruston Waterfront project), how long will it be before one of the large Seattle-based companies decides to relocate to Pierce County? 

Pure speculation.