Everything is cyclical in Real Estate. In this market, the multifamily will cost you more to buy because that's where smart investors are putting their money right now. The city of San Jose has less than a 2% vacancy rate (other cities in Santa Clara county are probably similar). So that means that if you rent the units fairly, you are pretty much guaranteed renters. You will pay more for the multi family but you will also make more on it. You have to look at the big picture.
If you use an FHA loan, it has to be owner-occupied. Are you willing to live in investment property for at least a year? Also most conventional financing is asking for at least 10% down these days and if it's less than 20% down you are paying PMI.