Single family home or multifamily

[Michelle Yalovay]

I'm 20 years old. Should my first property be a single family home or a multifamily? Also what type of loan should I utilize? Lastly, is this the right time to buy given the market is expected to take a down turn?

[Todd Powell]

@Michelle Yalovay
This is a easy for me! I would def go duplex or up to a 4 plex and house hack in! You can get a FHA loan with as little as 3.5% down plus closing costs. My son did this two times (technically he moved in for 7 months each time), and house hacked his way into sweet off market deals! FHA is NOT there to help you make investments, but he did this two times and both were 4 plexes. Although he did make the equivalent "rent" payments his other tenants did, so he created a huge reserve fund. He paid $415K and four years later just months ago, he sold it for $731,000 with no realtor or escrow fees! Yes, that story is 100% real on Merlo St, Portland, Or. There is less risk with a small multi if you have one unit down, you are still making the payment. I love good leverage and I really encourage you to do 2, 3 or 4 units. You will not be able to do 5 or more unless you get a commercial loan.