two trains of thought for buying first rental property

[Charles Noble III]

So, here are my thoughts...

Scenario 1 - By middle of next year, I will have enough money for a down payment (3.5%) on a property if I go FHA. I would live in the house for a year, then rent it out and look to buy another.

Scenario 2 - I wait until middle of 2020 to buy a property as a rental because I would have 20% to put down.

In both scenarios I have family that is very willing to move into my property. 

My credit is still in the rebuilding phase though.

Any thoughts or advice is greatly appreciated.