FHA for 2nd or 3rd property?

[Jason R.]

My 2018 REI goal is to buy two properties. One an FHA loan and the other purchased conventionally. Both MF. My family and I will live in the owner occupied for a year plus. We currently live in a house with a detached MIL apt rented in the back. We will keep this property and rent it out completely. I'm wondering if I should do this in a particular order? FHA first? Conventional purchase first? Will owning two other properties affect my ability to get an FHA financing? Also, is there anything I am overlooking or should be concerned about with this plan?

[Chris Mason]

Originally posted by @Jason R.:

My 2018 REI goal is to buy two properties. One an FHA loan and the other purchased conventionally. Both MF. My family and I will live in the owner occupied for a year plus. We currently live in a house with a detached MIL apt rented in the back. We will keep this property and rent it out completely.

I'm wondering if I should do this in a particular order? FHA first? Conventional purchase first? Will owning two other properties affect my ability to get an FHA financing? Also, is there anything I am overlooking or should be concerned about with this plan?

FHA is the least investor friendly of all the standard options out there. So use it first, while you're just a normal retail buyer on paper, and not an investor.

Alas, in a hot market, FHA is also the most frowned upon by listing agents and sellers evaluating multiple offers.