Is it better long term to jump into the fray and try to invest locally, where prices are higher and competition is higher, or invest in the other areas I am more familiar with, maybe not as hot but where prices are lower, inventory higher and there is less competition for properties?

Or do I try to work out a LC with the two free and clear, and conventional finance the other 3?

Most of them, due to their increased volume of distressed assets, have upgraded their web sites with links to their inventories.

I'm doing FHA or Conventional with only %5 down.

Being so new I would the more experienced opinion of the wiser BiggerPockets community.Here is my dilemma:I live in Northern California where house prices have hardly dropped and my community has currently 1 house below the $400,000 price.We are near a University and the rental market is always busy.I'm currently looking at two houses.A Duplex that rents for a total 1700 / monthA Fourplex with rents that total 3950 /monthThe duplex, I'm thinking of offering 215k bank wants minimum 235kFourplex I was thinking of offering 400k Banks wants 465kAt these prices my calculations don't seem to cover the 50% rule.I'm doing FHA or Conventional with only %5 down.Doing my calculations, at the prices they are asking I don't even get a Cap Rate of 6% or the 1% rule.What do you guys think?

There is a clear lack or inventory and no shadow inventory in sight.

I live in New Orleans so there are plenty of inventory... although most are not up on the market.

They are a pain in the ***, take a long time to close, and charge higher interest rate with more points then normal FHA or conventional loans, but if you dont have the money to start another way it can be a great way to get your foot in the game.

With a triplex, you can get "conventional financing".

Funds are paid, representations and agreements are signed and the note is assigned with an endorsement and filed.Usually a buyer will ask for a package of documents, I'd want to see;Copy of the note and deed of trust, Commercial deal, a copy of the settlement for the transactionA list of inventory collateralized and copies of the UCC filingsA copy of the first lien as filed with terms and payment requiredPayment history of the note, with verification of receipt/depositsCopies of any loan modifications or extensionsAppraisal on the property at sale on RE and equipment if anyA letter simply desiring the intent to sell with a description of the note with the book and page county as filed.