Use FHA or conventional if you just started investment but you have enough downpaymen

[Jaekwan Lee]

Hi, I just start getting to know investment after reading a house hacking book and I really want to begin the journey of expanding rental real estate. I am married and my family size is three (me, my wife, and 3 yrs daughter). Since I need to think about sending my daughter school in a couple of years, I want to start with duplex. I have enough savings for down payment 20% but I also hear that you have one chance of using FHA loan. So here is my confusion. Is still better to get FHA loan with 3.5% when I have 20% down payment for the duplex? Since I feel I see two options I can think of.

- Buy duplex with FHA 3.5% and look for another property like fourplex

- Buy duplex with conventional loan 20% down and wait until gain another downpayment