Updated almost 7 years ago on .
Inquiry regarding 1st home purchase
Ok so I desire to purchase my first home by qualifying for an FHA loan. My goal is to live in it for 1 year and than afterwards turn it into a rental property once I move out. Well, I noted that after several rental analysis of this 2 bed, 1 bath 861sq ft home, the calculations showed that this home isn't a great deal for a rental property. The rent to price ratio doesn't add up. However, this is a sweet deal for a first home buyer with great upgrades. The neighborhood isn't great and the highest reasonable rent in the area is $1000 per rentometer. Therefore; my alternative option would be to live in this residence and pull the equity from the home after the 1st year in order to purchase a rental property that will cash flow.
Any suggestions, advice, etc.....