Benefits of FHA vs Reduced Cash Flow

[Jacob Munson]

Hey everyone very early on investor here looking to understand more about different lending options for house hacking/long term rentals and had a couple of questions

1) As someone who is interested in house hacking what are the benefits to a 3.5% FHA loan vs a conventional mortgage. I feel like investors view the FHA as a great tool when you're starting out to get into properties but I feel like the downside is the higher payments kill cash flow and/or the ability to offset housing cost in a house hack situation.

2) As you begin to scale past your first few properties does it become more difficult to get loans because your debt to income ratio becomes worse. At this point is creative financing your only option?

Appreciate any thoughts folks have to offer!