Does it make sense to buy a duplex using FHA loan and rent out 1?

[Dawal Limbachia]

Hello fellow investors. I am new to real estate and I had a question about buying a duplex. My current income range is low to moderate. There's a 90% chance that I can get qualify for FHA loan. Do you'll think it would be a good idea if I buy a duplex and rent one out and self occupy the other. Would FHA allow me to do that? My long term goal is to creat a steady cash flow through rental properties. I am open to any and all kind of suggestions. Thank you in advance for your input.

[Stephanie P.]

Originally posted by @Dawal Limbachia:

Hello fellow investors. I am new to real estate and I had a question about buying a duplex. My current income range is low to moderate. There's a 90% chance that I can get qualify for FHA loan. Do you'll think it would be a good idea if I buy a duplex and rent one out and self occupy the other. Would FHA allow me to do that? My long term goal is to creat a steady cash flow through rental properties. I am open to any and all kind of suggestions. Thank you in advance for your input.

House hacking is your first step into real estate. Try to get a 4 unit, but settle for 2 or 3 and let the tenants pay your mortgage. Keep putting money aside as if you're paying the mortgage so you have a down payment for the next one. What's even better if the first one you use FHA (use the 203K to renovate the house on the bank's dime) and then use 5% down Fannie Mae for the second one and then start doing conventional loans until they tell you you can't have any more.