20 percent down vs 3%(ish) plus PMI

[Lauren Quest]

I've told some people about my investing goals and how I'd like to put a smaller down payment on a multifamily property and live on site. They've told me that I should looks out for PMI Costs. I did some research and understand what they are but I'm not sure how to evaluate which is the better deal. What are the pricing and mortgage differences between 20%(or more) down and 3% down plus PMI?

[Zach Wain]

Good advice so far. FHA is best for 2-4 unit property, 3.5% down. Trevor outlined how the PMI costs work. But, compared to a conventional loan FHA offers a lower interest rate that mitigates some of the higher PMI costs. But as mentioned, conventional loans require more and more down as you go to a duplex and then to a 3-4 unit. The answer is, it depends. If you find a duplex or a 3-4 unit that could change your decision making. A conventional primary duplex requires 15% down, a 3-4 unit primary conventional requires 25% down.

Also, how much cash do you need/want for your future investing goals???  

FHA shines for 2-4 unit primary home purchases, its a great mortgage option IMO