How Can I Finance a 2nd Property with FHA Restrictions

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In January 2023, I made my first real estate investment: a duplex with an additional third unit (3-family) for $375,000. I put down 3.5% using an FHA loan at a 5.75% interest rate. My total monthly payment, including PMI ($252), is $3,505. The property currently brings in $1,755 (1st floor) and $1,350 (3rd floor) in rent, while my fiancée and I live on the 2nd floor.

The property has appreciated significantly — recent comps suggest it’s worth around $550,000.

Fast-forward to now:

My fiancée just closed on a duplex in a great neighborhood, and we’re planning to move in there. The sellers, who are older, are also offering us an off-market triplex next door. It’s a great opportunity to scale and control more of the block, but I’m stuck figuring out how to finance a third property, especially with the following constraints:

My Challenges:

• My current home is under an FHA loan, so I can’t use another FHA product.
• I’ll need to refinance the FHA loan to convert the property into a conventional investment loan, but I haven’t built up 20% equity yet (even though appreciation helps, I know lenders go by appraised LTV).
• Down payment for a conventional loan would likely be 20-25%, which is hard to come up with quickly.
• My DTI is decent, but cash reserves are tight.
• We’d ideally like to purchase before our wedding in Feb 2026 while we still qualify individually.

My Questions:

1. What’s the best financing strategy for this 3rd property?
2. Is a cash-out refi on my current FHA an option if appraised value supports it, even with FHA loan limits and PMI?
3. Would a HELOC work even though it’s a multi-family and not fully owner-occupied anymore?
4. Any creative options — seller financing, DSCR loan, or partnering?

Has anyone navigated something like this — trying to acquire a 3rd multifamily while managing FHA constraints and low liquidity?

Appreciate any insight or similar experiences. Just trying to figure out how to keep the momentum going without getting overleveraged.

Thanks in advance!