Advise needed on purchasing my 2nd invest prop w/an FHA loan

[Andrew P.]

Quick backstory-So I purchased my first investment property in January. I got extremely lucky, and had it rented out 9 days after closing. It was a turn key property, so I knew it wasn't going to have a substantial monthly cash flow. I was ok with that. Purchased the property for about $140,000. I put down about 30k. Mortgage is $750 Rent is $1150. Again, not 50% and I didn't come close to the 2% (or even 1% rule). I had to do zero renovations other than change out the gasket on the dishwasher. Now I'm ready for a 2nd property. I'm going to use the "other house hack" route though. My plan is to buy a home, live in it for a year, then convert it to a rental property. I will have about 10k saved up, and I'm looking for a $150k property that is move in ready. (I have a full time job, and have no time for a fixer upper). So using mortgage calculators, it's looking like my mortgage would be in the $900 range. The problem with that, is that once I convert it to a rental, that would be about a $150-$200 positive cash flow a month. Should I save up more for my downpayment to try and get my mortgage down, in preparation for the future investment? Or should I just go for it, and then refinance before I convert it to a rental property? I put