Buying My First House with (FHA loan, Mortgage, Cash)

[Shawn Phillips]

I'm 25, a total beginner in Real Estate Investing, and working a stable job for about $40k/year. Within the last few months have been doing a lot of research on Real Estate for the purpose of gaining more cash flow and/or accumulating rental properties. I have student loans I'm paying off that take up a good portion of my potential savings, but I was still able to gather together $10k in my savings.

I read about the BRRRR method that brought me here to bigger pockets. The problem I'm having is that I really want to start this process, but the ability to save up $100k or $75k would take a long time for me to acquire. I feel a little stuck if not disillusioned at the prospect of not only owning my own home, but actually starting the cash flow process for buying multiple other rental properties.

This led me to possibly go down another path that isn't buying a SF house for it's full amount in cash, but instead maybe leveraging my first property for about 10%-20% down on a mortgage and maybe taking the rest of my saving, or getting a private loan, for the rehab portion of the BRRRR method. Then I come into the problem of the Refinance portion where my equity is very low, so my equity loan will also be very loan not giving me the ability to buy a second rental property. The other option is going for a FHA for about a 3% down payment, but the monthly bill with the additional MIP insurance would be around $1,300 which would most likely be above the monthly rent income which I don't want to do. Also, I have to live at the house for 1 year to be able to start renting it out. Am I analyzing this correctly for the position I'm in? Could anyone clear up or inform me of another profitable way to go about this in my current position? Any advice is appreciated, thanks.