Hello! So I am looking to buy my first property. Im looking around the Phoenix AZ market. Yes the market here is at a high and really hot. I have about 8k to 12k cash and I am debating using the down payment assistance program we have here In Arizona to increase my purchase price. One problem with the down payment assistance is I have to live there for 3 years. Im going to use a fha 3.5% down or a conventional 3% down. I have a full time job income is $3600 after taxes. I have 0 expenses now. I also plan to rent out the extra bedrooms I have in my unit or air bnb them. My goal is to buy a place (single or multi) live in it for about a year turn it into a rental and buy another and continue that trend. So I have a few options I am debating on doing.

#1 Don't buy and save more money. (But I will be paying around $1200 in rent per month that I will never see a return on)

#2 Buy something I can afford with no down payment assistance. Like a condo or a small single family with hopes of a low hoa. It will be a lot cheaper of a place and may be harder to rent. But I Save the higher interest rate and I can rent it in 1 year vs 3. Price range $100k to $130k

#3 Use the down payment assistance. single family. Price $225k to $275k easy to find an ok place.

#4 use the down payment assistance multi family. Price $225k to $275k is gonna be tough to find a decent deal.

Let me know what you think. Thanks!!