Advice on future financing/refinancing
I have 1 property in which I rent out for $1,300 a month, my monthly payments to B of A are 1,046 including PMI (FHA loan which I should have refinanced before I moved out). I am now looking to buy a multi-unit to live in and rent out the remaining unit(s), duplex or triplex around the 200-250k price range. I have about 12k in cash savings and am saving about 1k a month living pretty frugally.
Would it make more sense to pay down the FHA loan, refinance into a conventional and use another FHA to purchase the multi-unit OR use the cash as a down payment on the multi-unit and leave the FHA the way it is until its paid down through rental income? I may have the option of asking my parents for a loan to pay back with interest. I'm just looking for the most cost effective option.
Or are there other options which I am not aware of? Thanks in advance!