Buying investment properties with minimal downpayment

[Mikky Alfaz]

I'm just starting out by purchasing a 4-bedroom house on an FHA loan with great interest rate in 01/2018.

I do want to buy other properties with minimal downpayment possible. I know I'm only allowed one FHA loan, and I can convert my current FHA loan to conventional thenrent out, and then take out another FHA loan as owner-occupied.

My biggest issue is the interest rate! I currently have a great rate on FHA, and refinancing into conventional could raise my monthly payment by a couple of hundred bucks.

Question is can I purchase an investment property right now with 20% down, then move out of my FHA after 1-yr to the "investment property" and then refi it as owner-occupied and cash out my 20% downpayment put into it to LTV of 95% and use the funds to buy another property?

My goal is to keep my great rate FHA, and still able to buy other properties until rates drop!

[Zack Karp]

@Mikky Alfaz wow lots of bad info in here...

To answer your question, NO.  You cannot cash out to 95%.  75% is the max Conventional cash out on a 2-4 unit as a primary.

Suck it up, refi to Conventional now, because you CAN do a rate/term refi at 95% on a single family, then buy the next one with FHA and 3.5% down in a year.

Rates will continue to rise.  Just be happy you are doing things in the 4-5% range now, rates are still historically pretty low.

Listen to a lender who knows what they are talking about.  In fact, since you are in CA, @Chris Mason is who you should be talking to about this.  He knows his stuff too.

Best of luck!