I bought a duplex, live in one side, rent the other. First time owner 5% down. Obama gave me $8000 to live in it for 3 years. mortage+insurance+taxes - rental income == about 1/2 what I would pay to rent similar place. I get many tax benefits (rental 1/2 counts as business). My equity + 8k (which was a one time thing but you should have taken advantage of it) is already more than my downpayment after 2 years. In another year or two I'll move out and rental income will be paying everything including building equity and providing a $4-500 of profit (which I expect to mostly used up in maintenance).

Duplex living is great deal. Assuming of course you live in a non-suck market (realestate and job). If I had the money for 20% down payment I'd be buying more.