Best Way to Finance

[Amy Xu]

I'm new to investing and want to buy a house to rent out. I have excellent credit (over 780), no debt,  I was pre-approved for VHDA loan with 3.5% down since this would be my first home. My loan officer keeps telling me the best way to build real estate wealth is to finance a home with low money down and then live in the house for 2 years, after two years buy another home with little money down and keep the first home as a rental property and keep going from there. Is my loan officer saying go for low money down because she wants me to pay interest on a larger outstanding priciple so in the long run the bank gets more money or is this a good strategy in general? I don't have enough for 20% down anyway, should I wait until I have 20% down or should I go with the lowest down deposit possible?

Thanks

Amy