Which is the smarter option?

[Adam Nesheim]

Hey all, first post!

I have a duplex in mind that I have seen and has current renters in that are currently paying $1300/mo. I ran two different analyses on the property. One was doing a house hack where my wife and I would live in one of the two units and the other of renting out both units. In the first analysis which included house hacking, the expenses far outweigh the cash flow and would result in me paying almost $600/mo for the mortgage and other expenses. To preface this, the property is listed at $299,900 in a very up and coming area close to schools and the interstate. I believe it is actually worth about $310,000. My second analyses which included renting both units for optimal price of $1400/mo. This created a CoC return of nearly 11%, profiting in about $700/mo. The issue that I am having is money. My wife and I just started saving our side hustle profits and do not have much saved, not enough for a down payment. So I have a few questions regarding this predicament.

First Analysis: https://www.biggerpockets.com/...

Second analysis: https://www.biggerpockets.com/...

1. Would it make sense to get an FHA loan and house hack for a year and then do a cash out refi and get another property and make this a double unit? (Currently we pay $1050/mo in rent, this would decrease our overall payments to roughly $600 while generating some cash flow and building equity.)

2. Would it be worth it to cash out our Roth IRAs with the exemption clause allowing no penalties for first time home purchase?

3. Could I get a private lender for just the down payment and get regular loan after proving enough or the down payment and rent out both units right away? Or do I have to use a private lender for the entire purchase price?

4. Do I pass this up and try getting into wholesaling to start generating more capital before attempting other deals?

This would be my first investment property so I am looking for any advice! Thanks in advance!