Trying To Get Started in Dallas, TX
I'm in the DFW area (working in Richardson) and I'm approved up to $170k for a property with a FHA 3.5% down loan. I will have a roommate who will rent out a room in this future property to help offset the monthly expenses. Right now my goal is to find a property that I can refinance to a conventional loan (get out of paying PMI ASAP) and will cash flow when I move out in 1-3 years. I need to find something that is not too far of a drive (McKinney or Rowlett are what I would consider a reasonable maximum commute time) and where I won't get murdered or robbed every few months. I know I will have to look at a lot of properties before I find a good deal, but the lack of options makes it seem that this could be a journey that could last a year or 2 at this rate.
So, what would be a good plan if I can't find a property (right now I have until May 1st to let me apartment know if I am renewing my lease or not)? Find a property I can afford that I feel will appreciate in value in the coming years but will make a long time to cash flow (mostly buying in hopes of higher property value in the future), continue to rent until I can afford a down payment for a conventional loan to allow me for more options on cash flow, or continue to rent and invest in a more affordable cash flowing market?
I want to make as smart of a move as I can given my current limited options so I want to see what others would do in my situation.