FHA or Conventional when you have both options?

[Sebastien Beauboeuf]

I'm planning on buying my first property in Chicago next year when i have enough money saved up. By that time I'll have enough money to put 20% down on a $200k property plus renovations. My plan is to buy and hold either a single or multi family house (30 year fix). In either cases, me and my gf will be living in the property which should get me qualified for an FHA loan. I want to find an under market value property that I can fix up a little and then refinance it a year or two later to get funds for my next property. My question is should i go FHA or Conventional?

I know depending on who I ask i can get either one. Below are some of the pros and cons I could come up with.  What are other things to consider? Which one makes more sense for my situation? (I have good credit)

FHA pros: low down payment, i'll be able to keep more of my savings, pay low or no mortgage when i rent other unit(s)

FHA cons: I'll have to pay PMIs, higher mortgage if I can't rent other unit(s)

Conventional pros: lower mortgage payments

Conventional cons: less money available for other deals, less money available if something goes wrong