Hi i will try to keep this simple. I am in the search of buying my first house. I am looking to house hack a multifamily which would more or less pay for the mortgage of that home. I think i will be ok with my first purchase my concern is how to go about buying my second property. I know you can only have one FHA loan at a time. My plan was to save up the 20% to put down on another property using a conventional loan but i am unsure whether you can have a conventional loan while having an FHA loan. Alternatively would it be better to pay up to 20% of the FHA loan in order to refinance into a conventional loan and then the second property use an FHA loan. Please give me any insight you guys hace it will be helpful. Also how you guys got started will also help.
It took me a minute to think of a good strategy for you but here we go. If you went with the first as an owner occupied FHA Multi family 3.5% down you would have to live there a year. On the second I'd recommend a Freddie Mac Home Possible which would be 5% down on a 2-to-4 unit with the same requirement of owner occupied for a year. In the time of living at the second for a year you should have 25% equity in the first FHA to switch it over to a conventional and free up your FHA for another Owner occupied 2-to-4 unit. At this point you'd have three cash flowing multi-family properties and if you wanted more should be able to get the down payment for a conventional loan from there on out.
Best of Luck!