working on my first deal & need guidance on my strategy

[Joseph El hage]

Hi, i am new to this , i already owe my apartment but i am looking now to invest & i have in my mind 2 ideas that i wish to seek in the coming 6-12 month 

- first is buy a Duplex home live in one & rent the other using an FHA loan ( while i will rent my current apartment that would leave for me a cash flow monthly of $800) the reason to live in it with my family is to be qualitied for the FHA loan. for the new duplex my total loan would be around $6,500 and the other house can be easily rented for $4K its a 3bd 2bth, yes i would need to pay $2,500from my pocket but i am able to move my cash around more with the below step.

- while i hold a decent amount of cash i want to use that amount to invest in a quadruplex for long term rent that will require a 20% down payment and for that reason i want to hold to my cash.

what recommendations do you suggest here & is this the correct approach or wrong one and if so what do you recommend me to do?

appreciate your guidance and help 

thank you guys 

[Jason Wray]

Joseph,

Sounds like you have a good game plan but you could buy the quadplex first with the FHA loan. After 6 months you can refinance the quadplex into a conventional loan which will free up your FHA power. Then move into the duplex with an FHA loan overall saving yourself a lot of liquid cash/reserves. So essentially you can be in the Quad for 6 months refi and move into the duplex where you can reside for a period of time until you either refinance into convenational once again to free up your FHA option or pull out cash throug a cash out refinance to buy more doors.