Best way to approach buying a multifamily

[Nnabuenyi Anigbogu]

Hello everyone,

I am currently trying to decide the best way to approach buying a 2-4 unit property. It will be owner occupied for a minimum of a year and i currently own my own condo which i will rent out so the multifamily will be my primary home.

Facts

Price range for the property is 300K - 500K
Monthly payment for all properties i have explored with agent is 925-1230 (all the analysis factored in projected rental income and maintenance and most of them were already rented which gave us the rent needed for underwriting)

Current cash saved for downpayment = 45K
Income = 80K (45% is 3000/month)
Condo PITI+HOA = 720 (currently FHA)(market rental for similar units in my area is 1000-1200)
Total monthly debt + Condo = 2000 (approximately 250 is credit card debt at 0% that can be paid off if needed but have been saving the cash for DP)

As you can see i will not have enough for a 20% down conventional and cannot go FHA because my current place is FHA financing (the refinancing process would take too long to switch to conventional). This is my only issue.

I am trying to figure out the best route to generate the downpayment needed (or get 10% down). My household income will just about double in September due to fiancee starting work (currently finishing her masters in nursing) so i know that i can take out more debt now and pay it off then. I also work a side business for about 1-2K a month that cant be counted for qualification since it started in Nov. So cashflow is not an issue. Its just the time needed to get the downpayment.

Options

1. Use a 80/10/10 loan (ideal option) - My mortgage lender says that this is not doable for multiunit but i have read online that it is possible for 2 unit properties but not 3-4. If that is the case what lenders out there let you do this for a 2 unit?

2. Borrow the money for the downpayment. - I can pay off my cards and rent out my current condo (lender says if i have a signed lease i can count 75% of it as income). By removing these items from my DTI i will be down to (2000-720-250) = 1030 out of 3000 (45% of income). This gives me room to borrow up to 35K easily and still qualify for a mortgage and stay under the conventional 45%. This would help me buy the 3-4 unit.

Are there any other ways to go about this? 

I appreciate any help given.

Thank you