Move into an apartment, or do a cosmetic rehab on a SFH? Advice Appreciated!

[Thomas O'Donnell]

I am currently house-hacking a duplex, but my portion of the mortgage/expenses has been draining me and is too much for my liking. I bought this duplex with 0% down at a 7.5% interest rate in September 2022. The other side is rented out below market value but that lease does not end until 03/2024. I would love some input on what I should do.

I have been strongly considering moving into a small apartment and renting out my side at or close to market value. Even though this would save me around $500 more per month, I am worried about being stuck on a 1-year lease if I were to come across another deal to house-hack. Ultimately, I would love to move out, rent my unit and get a SFH that needs cosmetic upgrades so I could live there and fix it up while I do for a year or so. The only thing stopping me from doing this is that I do not have the funds for a 3.5-5% payment on an FHA loan (or a FHA 203k loan to help with repair costs).

Without having funds for a down payment, I feel like I am forced to go the apartment route. Does anyone have any tips or know any lenders that could help with little to no money down on a an FHA loan; so that I could live in a house and add value through cosmetic rehab while I do? I appreciate all and any responses! Please ask questions if I was not clear enough, thank you!