Tips for Second Purchase

[Adam Czub]

Hello,

I am writing in hopes someone might give me some valuable advice on my current situation and the potential of purchasing a second multi family home.

Currently I own and occupy one duplex and am on my 3rd year of doing this. My strategy with this is to hold it for the long term. I purchased the property with a 30 year conventional loan and 20% down. Currently I have around $30k in equity. 

The house was in decent shape when I bought it and over the last 3 years I have made some great improvements that should hold me over for the coming years. 

In the last 3 years I have replaced both furnaces, all windows with new construction windows, painted and updated the interior. I don't for see any major things in the coming years with the property but there's always a chance. My tenant has stuck with me for the last 3 years and has never missed a payment and takes care of the place great!

I would like to acquire another multi family buy and hold. I was thinking of achieving this through an FHA loan since my first purchase was with a conventional loan. (I'm not 100% sure if that's possible?)

I was thinking of going the FHA route because of the low down payment requirement. Could anyone let me know if they agree with that idea?

For the next property I was thinking I should go with a tri-plex for the extra income and I feel now I have the level of experience needed to handle those extra units. I do understand if I went the FHA route I would have to occupy it and that's perfectly fine.

Would there be any better financing ideas? I don't have a lot saved up for a down payment but I know I could easily meet the 3.5% needed for the FHA loan.

If anyone has any ideas or feedback for me I would be all ears.

Thanks for reading!