FHA 203K Loans

[Anthony David Quinn]

Hi BP. New investor here. 

I currently own a primary residence with about 170K in equity. I’m looking at purchasing a new property as a primary residence, renting out my current home and with a view to renting out the new property after 12 months. I’m unsure of the best strategy. I have three potential options (I think). 

1- FHA 203K Loan.
Buy a distressed property and use the 203K loan to rehab. After 12 months rent out. 

2- Buy a more turnkey property with a conventional loan 5% down. (Worry is that nothing cash flows with rates so high and only 5% down). 

3-Conventional loan on a fixer upper, take a HELOC (approx 120K) on my current property before we rent out and use that to rehab.

I’m hoping someone with experience can help guide me. 

Thanks so much! 
Anthony