What should I do with my 70k cash?

[Jane Kim]

Hi!

I'm new to this process so please excuse me if I sound ignorant on some parts. These are rough estimates, but thought it'll be a good idea to get some opinions on it.

I'm planning to house hack with 3.5% down using an FHA loan on a duplex that markets at around 700k in LA/OC area. After the closing cost, this home will probably cost me around 35k to purchase.

I'll have 35k left to do another investment. I'm not sure if I should buy another home or I should add the 40k to the duplex down payment. 

But, can I even take out another loan to buy an investment home in LA/OC area with the 700k loan that I'll already have from the FHA loan? I'm worried I won't be able to take out a loan amount that's big enough to purchase another home in LA/OC if I already have a 700k loan...

I know that the home prices in LA/OC are outrageous, but I've heard numerous times that I should invest in areas where I live close by. Even if I'll live in this duplex, I plan on only living in it for a year. Then moving out to another home in LA/OC using an FHA loan.

This is my grand plan... let me know what you guys think! Thank you!