Hi! New BP member here and over all new to real estate investing
My plan is to house hack a duplex and my goal is to cash flow once I move out of one of the units. I'm aware that there are options for low money down like FHA loans which usually carry lower interest rates than conventional loans. What's straying me away from this option is PMI, the up front mortgage insurance and longer wait time before the PMI drops off since I will be putting less down kind of sucks.
At the moment I think I'd be willing to put 10 percent down with a decent interest rate if it meant I could get to 80% LTV faster. I think this route would save me more money in the long run and I could cash flow faster. Is my thinking on the right track?
It depends how long you would plan on keeping the property. If you sell it before it hits 80% LTV then it doesn't really matter as much what loan type it is. Maybe check out a 5% down Conventional. In any case, you may want to buy Conventional because if you buy FHA and then go to buy another FHA within 100 miles, you'll run into some hoops to jump through. I will say that many seller would prefer a Conventional offer over an FHA offer too in a multiple offer situation.