Question about different financing options

[Tim G.]

Hello,

I bought my first SFH in 8/2014 and have been working on wiping out debt, fixing up the property and saving like crazy. The SFH was a conventional loan with 3% down (first time home buyers) and came with a GREAT rate. We were approved for 2X more than what we bought the property for so it has been easy living financially. I am moving on to buying our next property and am wondering what would be more beneficial. I know we can of course use 20% down on the property but I also believe we could go with an FHA loan as long as we live in the property for one year. In this scenario we would rent the first property out for hopefully some decent cash flow and house hack the second property or just get another SFH and rent it out after 1 year. At this point rent from both properties should be counting towards income for the third property which of course would need to be a conventional with 20% down (I believe). Does this sound like a good strategy? Am I missing any other possible financing options that don't require 20% down (for me to do personally)? Any advice and insight is welcome.