3.5% FHA or 5% Conventional w/ NO PMI

[Michael Cavitolo]

I'm looking to purchase my first property and house-hack a 2-4 unit, owner occupied. Planning to live in one side for one year, then move out and rent out my side. 

One lender is offering 3.5% FHA and another is offering 5% Conventional w/ NO PMI. What are your thoughts on both programs? What is a better route to expanding a portfolio?

My theory is with no PMI, lower monthly payment so it might be easier to cashflow? The goal is to retire in 14 years off rental income. I'm 26 at the moment.

Thanks!