FHA questions, specifically regarding the purchase of 2nd home.

[Jesse Olsen]

Hi Friends,

Brand new to this.  Looking to close on my first property within the next 6 months, I have narrowed it down to either a cheap Condo or a duplex. I make about $2,800 a month, 670 credit score and have $15,000 available for investment.  Currently I pay $1,450 W/ utilities for a newer 2 bedroom apartment (NEVER AGAIN, insanely priced for what it is!!!!!!!). 

Leaning towards a condo because between me, my girlfriend, and 1 extra tenant (plan to fill the spare room) the overhead  cost to maintain the property will be nothing.   I really like the idea of this because I am an avid stock investor, Just recently (2 years ago) I've started trading the market but long story short, I want to spend a good part of my life playing with stocks and don't like the idea of a house payment stopping the funding to my stock account.  

I am wondering, if I put down 20% on a condo, can I qualify for a FHA loan using 3.5% on a duplex in a few years if I occupy the future property?

I guess my biggest question, am I doing myself any harm getting into a condo at this age? Are there any special rules that an FHA loan can only be used as a first time home buyer?

Will it bar me from qualifying for another loan in the not so distant future? I would owner occupy the duplex bought with FHA financing in a few years, heck honestly in a few years if I can qualify for a fourplex, I will be doing so.

At the age of 22, I figure any investment right now is better than nothing.  I ran the numbers through the BP Rental Calculator and am looking at around a 10% return on cash investment with the investment in a condo, this does not include using 3 people's incomes in the scenario, instead it simply is being conservative guessing $850.00 a month rent for a 2 bed 1 bath.  Seems like an honest realistic estimate on return to me.  Between me and the two other likely tenants, there will be a cash flow of $1,050 if we all pay $350 each.  Sounds like a good deal to me!   The calculations I performed included all expected expenses I could possibly think of. 

Thanks for the help, much appreciated.