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To OP:
You mention being single w/ no dependents. I'm in the same boat. I purchased a $232K house using FHA. Put 3.5% down. Had 11K saved up after closing. Spent about 6K of that buying appliances (house was bank owned and old owners removed stove, microwave, 6 ceiling fans, refrigerator, and dishwasher).
My house is 3000 sq ft and 5 bedrooms. I don't make 100K a year. I rent out 4 of the rooms and live in the master. Total rent collected is $2200 ($550) each room. My mortgage + prop tax + insurance = $1610/month. I essentially don't pay the mortgage and pocket the nearly $600 towards the eventual taxes I will pay. (I love the first of every month. Oh hey, aug 1st is coming).
My house was built in 05 and greatly reduces the chances of a furnace blowing on or needing a new roof anytime soon. Some think it's hard to find tenants, and it's different for every city, but there is a huge tenant market right now. A lot of people think like media artist and save to have 20% down. That's great! In the meantime they have to live somewhere - renting.
Other friends said the housing market will continue to plummet and my house will lose value and have negative value. If you create my housing set up; who cares?! I want the market to crash more; I can buy another house like mine for less and keep the rent the same. If someone said my house was worth $150K now instead of the 230k I purchased it for in Oct 11' I wouldn't care. It will appreciate eventually and my mortgage is paid for and then some (in the mean time). My roommates are great. I filled my house to capacity by Jan 12 and have been. Collecting the profits every 1st of the month. It's like having a mortgage free newer $3000 sq ft house & the profits pay the car note, so a free 07 335i.
This doesn't work for those w/ a wife and kids.
Food for thought.
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