Considering purchasing a duplex, living in the upper and renting out the lower. I've thought about this on and off for a while but this is a real possibility now that I have a confirmed and decent source of income. Was talking to my dad about this the other day and he said that now is the ideal time to buy, with housing prices still down but materials and labor costs rising. He said it would probably be best to get an interest-only loan, which would allow for it to pay for all expenses and gives me a better position in terms of cash flow during ownership as well as when I go to sell. My argument against this is that I currently have no obligations (aside from bills and stuff like that, I'm debt free) and am unsure of whether or not I want to take one on. However, I'm being swayed by the possibility of making a decent amount of money with appreciating home prices, lowering my living costs through the lower expenses associated with homeownership and subsidizing with a rental, and with having a place of my own. What is everyone's opinion of the housing market where it is currently at and where you see it going in the next few years? What does everyone think about this situation?