Getting started in owner occupied buy and hold.

[Keith Manchester]

I had a plan to save up 20% ($60, 000) for a down payment on a owner occupied $300,000 home. I have been networking with people in my area and I've got varying feed back. Some say that's a good plan and some say split it in half and get two! Live in one and rent out the other. I also hear on the podcast more often than not that people wished they had gone bigger on their first venture into REI. What are your thoughts BP??

[Justin R.]

Given this is an owner occupied purchase, your first investment, and condition of the housing market; I would suggest you purchase what you can comfortably afford.

I would look into the largest multi family investment that uses standard conforming residential loans (4 units), quality neighborhood, under market value (gonna take some marketing or elbow grease), and put down 20 percent to keep you from having to pay PMI.

On your next investment, after you get some experience you can look into lower down payment loans.