First Time Home Buyer Strategy

[Kyle Rushing]

Howdy Bigger Pockets Community,

Would love your insight on a decision I'm trying to make here. 

My wife and I are currently living in a TINY apartment with our 1 year old baby girl, and are expecting another. We are looking for the smartest way to get into a house. 

My wife is currently working full time. I am working on getting my wholesaling company up and running while also taking care of our baby girl. 

We have been pre-approved for $200,000 only, however my brother is also looking for a place to move into as well, and we are considering purchasing a property together. He wants to eventually buy a 4-plex and move into one of the units.

We had the idea that my wife and I would use our owner occupancy loan to knock our down payment to 3.5%, my brother would pay half of the down payment, and half of the mortgage every month, and would own half of the house. After a year, he would purchase and move into a 4-plex using his owner occupancy loan. We would pay half of his down payment, half of any closing costs and expenses, and would own half of the 4-plex. 

My questions are as follows.

- Does this seem like a legit strategy to you?

- What are the potential pitfalls that I am not seeing?

- Would it be possible/beneficial to put my wife and him on the loan instead of me, as they are both working full time jobs, and could likely get approved for more. Would there be a way to do this by only using my wife's owner occupancy loan and not my brothers, so he can get into a 4-plex later on? 

- Anything in particular that we should be looking for in a house, if we plan to rent it out once we move out? 

Any feedback is greatly appreciated. 

Thanks!