House Hacking FHA Downpayment Strategy

[Priscilla Paul]

I'm looking to purchase a 3-unit multifamily next year that I would occupy 1 unit of and rent the other 2. I will finance using an FHA loan and I know the minimum downpayment is 3.5%, but putting so little in minimizes cash flow. The most I would be able to put down would be 7% and I'm trying to figure out if I should put the 7% in for the downpayment or just put 3.5% and hold the other 3.5% towards other investments/future property. (For this scenario, please assume closing cost will be covered). Any advice much appreciated!