which is better and why?

[Tony G]

I'm planning to buy a duplex and be OO in the property. I will be using an FHA loan to achieve 3.5% DP. I will live in the property until I have filled my FHA requirements for occupancy. My objective here is to use minimal cash outlay for this long term buy and hold venture.

Now is it better to pay the closing costs out of pocket or roll it into the loan?

[Jon Klaus]

Ask the seller to pay closing costs. I believe FHA will allow the seller to pay buyer closing costs up to 6% of the loan amount.