First Deal Strategy - Conventional / FHA - A bit confused

[Garrett M.]

Just looking to clarify a few points so I can better understand the direction I want to move in REI.

As of today I have enough for a 20% down payment in my area. Triplex, owner occupied.

I am looking to move into my first deal for at least 2 years while renting out the other two units. After this time, I would move out and do this again with another property.

I see three scenarios here:

1 - Putting 20 down would allow me to get in to my first deal but would require a longer time to save for a down payment for a second deal assuming I go conventional. I believe (and please correct me if I am wrong) I could go conventional for my first and FHA for my second at 3.5% down payment with lifetime PMI or conventional at 5% down payment with temporary PMI.

2 - Putting 5% / 10% down with conventional, paying PMI until my equity is 20% and then getting rid of the PMI. Would I have to refinance for this or just re-appriase?

2 - Going FHA with 3.5% down and essentially repeating scenario 2 but having a permanent cash outflow for PMI. I see may folks on this site praising FHA but I do not understand the benefit. If I could put 5% down and avoid lifetime PMI plus all the other upfront FHA costs I would do it in a heartbeat over FHA. If I only had 3.5% I would save up until I could make the minimum for conventional. Unless there is something I am missing, why ever go FHA?

Looking for any insight that can be offered here on if I am asking the rights questions or missing out on a point entirely.