Newbie seeking advice for buying his first house in Austin, TX
Hi,
I work remotely and can live anywhere in the US. About a year ago, I decided to move from Kansas to Austin to see how living here feels, which I've liked so far. Now, I am planning to buy my first property, but I am not sure which part of Austin, and whether to buy a single-family or duplex (if I could!). I am thinking of house hacking. One advantage that I have is that two of my current roommates agreed to move with me when I bought my first property. They can give me around $1500-$2000 for rent together depending on the house.
A little bit about myself. Single male, in my 30s, have made $85K on average for the last 2 years, 0 debt, my credit score is around 805, cash is around $40k, 401K is around $11k, can save $2.5k per month and currently pay around $900 for a furnished room (with all the utilities it gets to around $1000).
My questions:
1- Cash flow doesn't matter to me. I am currently paying around $1000 for rent. If I can find a house for which I only need to pay this money out of my pocket, I will be happy :). Therefore, my focus is on appreciation. So, which Autin neighborhoods or suburbs fit my budget and have a better chance of appreciation?
2- Do I have a chance to qualify for a duplex with my current salary using FHA loan? There are duplexes in the $500K-$550K range that I think I should be able to qualify with around 3.5 percent down, a 6.4 interest rate, a worst-case scenario of $1500 projected rent income for the other unit, and a 0.5 debt/income ratio but I am not sure if it is possible.
3- In general, for a first-time home buyer, do you suggest a single-family or a duplex?
This is my first post in BiggerPockets. Thank you all for your help :)