Newbie in Silicon Valley buying with FHA, but ouch on PMI

[River Smith]

I'm getting ready to buy my first property. I want a multi-unit dwelling (up to 4) since I will be living in it myself too (I now rent). I live in Silicon Valley which is crazy expensive (fixers for $500K), but if I'm careful I can still do this. I won't have any cash flow so I plan on building equity, which can be 10% a year in these parts (I've seen it).

My big problem is the PMI for an FHA loan. It's over 1%, which can be about $500 a month. Any way out of this?

Thanks, and love this site!! I'm just getting started!!!