Trying to buy my second property

[Cory Patterson]

Hey everyone! I'm new to biggerpockets.com (my first forum post) and so far it's seems like it was a great idea to sign up. So here is my question. About 6 months ago I bought my first piece of real estate, a 2 unit in which I occupy the first floor unit. I bought the home with an FHA loan for $125,000 at which time the property was appraised at $135,000. The market values in my area have increased since but only a little bit. I'm interested in buying my second multi family and would like to do so as soon as possible. The problem is that it will take me a year or more to save up a %20 down payment on anything worth buying in my area. Seeing as my current home is financed above %80 LTV, using home equity for a down payment is not an option. Does anyone have any suggestions on what might be the best way to accomplish the financing on my second investment property? I thought about paying down my current property to the point where I could refinance into a conventional mortgage and then use the FHA loan again in order to put down only %3.5 on the new investment. I'm sorry entirely sure if that's the best possible way as it will also take some significant time. Any ideas?