The closings costs alone will probably eat up any potential profit you may make on this "deal".

Sure you now have a house and sure that rent isn't there anymore but there is a mortgage that you have to pay that will eat away at the rest of your funds. 

Property taxes eat up a ton too.

Like I have mentioned I have a 4 month old daughter to look after so I need to hustle especially at the age of 20 I feel like I definitely can still squeeze in to make plenty of mistakes, risk, and most of all learn from it but what is most valuable is time and it’s running out , going for my AA in RE for 2 years is going to take up time but it could be an assets in the near future so If I’m going to college I’m going to have to make the best out of it because I refuse to be 30+ years flat broke no education and my daughter eating cup of noddles.

Transfer taxes and realtor commissions on the sale side will eat a lot of that up.

-JB Did you 1031 or eat the capital gains?

Eating an expense like that per turn isn't a big deal.

While I'm incredibly fortunate to be in this situation, it does mean that I would have to forgo my expense-less housing in order to house hack, which is the most feasible investment option for me.So my question is this - does it make more sense to stay where I am & keep saving for as long as possible, or should I purchase a FHA financed property and eat the holding costs for a year until I can rent it out. 

Servicing costs eat up a larger percentage of your monthly payment.

We do not want to spend money on this property and am concerned that the outlay of funds could easily eat up any profits made from the sale of the house.