As another choice, buy a duplex, triplex, or fourplex. As long as you live in one of the units, you still get a low down payment. Here are some examples of maximum FHA loan figures for 2-4 unit properties:
Lower Cost Areas Highest Cost Areas
$205,032 $371,621 247,824 449,181
If you buy a 2-4 unit property, you won't have to qualify for the loan using just your monthly earnings. The rents that you collect from the property also will count. Because my first investment property was a five-unit apartment house, I strongly favor this approach to getting started.
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