Staring out in buy and hold with low capital *Question*

[Mario Nakuci]

Hello Everybody,

I am a newbie in real estate investing and I have a question. 

I want to start investing in buy and hold properties. 

I current live in CT and I work as a bartender and as a real estate agent. So far I've saved up around $20,000 and I am trying to get in a 3-4 for family unit in a decent area of Hartford county. On average those types of properties range from $250000-$300000 for light fix condition and around $190000-220000 for mid to heavy rehab. I currently own a renovated townhouse. I purchased for $130000 and I have $10000 equity in it. Right now realistically my property would appraise for $170000 so if I do a refi I might be able to pull some money out of it. 

Due to the fact that I own a house I wouldn't be able to qualify for an FHA but a few months back our office in house loan officer informed me that there is a Fannie Mae program that allows buyers who own 1 other property to purchase a multi family house with 5% down as long as it is owner occupied. There are some other limitations and criteria but I am positive I'll qualify.

I want to get a property that needs a solid amount of work for below market prices. All my family are tradesmen so I can rehab the house for next to nothing cost. 

My question is :

Do I save more money and try to buy a cash property or do I take advantage of the Fannie Mae program and get a multifamily for a low down payment? 

The end goal is to BRRRR the property and I know that purchasing cash first and refinancing after the repairs is the way to go but I am thinking going at 5% down I wouldn't be leaving a tremendous amount of money in the deal. Ideally depending on the appreciation and the purchase price I'd refinance a couple of years down the road.

Thank you so much for your time ! 

Any advice or opinions are highly appreciated.