Hey BP, I’m in the process in planing on purchasing first investment property. Here’s my strategy,

• Current status:

Early of this year I paid off my mortgage for a townhome within the city at appraised value of $75k and it's currently occupied by a family member. It has minor upkeep expenses about $500 monthly taken care by the occupant. I currently rent an apartment outside the city. I have a great credit and depending on what route of investment I take, my DTI ratio is good, not super great but good for anything up to $200k.

• Top view goal: 

Purchasing a duplex close to $200k or SFH close or less than $150k.

• Financing strategy: 

Option A - For the next SFH property using HELOC for rehab and private lending to buy from two relatives/friends. Season it, refi, payback.

Option B - For a duplex property use HELOC for a down payment. Finance with 203k, rehab, self occupy and rent out. Season it, refi and payback.

Thoughts any one? I can go into more detail but wanted to see if this will work.

I would be happy with either approach.  

I'm just putting the final touches on a HELOC and will aim to use something close to your Option A approach. I have owner-occupied a number of houses, and have improved them as we go, and sold later. Here's the current slow-motion renovation:

UR Home Investments

I just haven't used a HELOC in conjunction, nor bought a multifamily. But the owner occupied rates and down payment can make this a great way to add doors, add value and have some income.

@Adrian Gonzalez , no, we have done a handful that we did occupy while remodeling (for the capital gains exclusion), a number of fix and flip deals, and the bulk of the deals have been long term holds.  We have been slow and steady at acquisitions over a good span of time.