Foreclosure vs house hacking

[Jorge Solis]

I'm currently looking for my first investment property in Northwest Georgia. I'm 23 years old and I've already been pre-approved for a $200k FHA loan on a quadraplex as long as 3 of the units are already rented out. However it's going to cost me around 10k for closing cost and the down payment. On the other hand I found a foreclosed 3/2 single family for 54k with an AVR of 100k. I haven't yet looked at the property but it looks like all it needs is paint and kitchen cabinets/countertops. I need advice on which one would be better to pursue. Both will be buy and holds. I would rent out the foreclosed home after 1 year of living in it and move on to my next investment. If I put a few thousand into the foreclosure, couldn't I refinance after maybe a year and cash out the equity the property gained?