Loan option comparison as a first time house hacker

[Haley Jang]

Hello BP, 

I'm currently shopping around mortgage loan for my first house hacking purchase.
Currently I have couple options for mortgage program from a few lenders and I'd like to hear advice from you to choose the best option for me!

Base info: 

Purchase price: 730k newly constructed town house

Option 1. 30 year fixed, no PMI, Interest 6.875%, total closing cost 92k with 10% down, monthly payment $5000

Option 2. 30 year FHA, Interest 5.5%, total closing cost 89k with 10% down, monthly payment $4700

Option 3. 40/15 year balloon, no PMI, interest 6.625%, total closing cost 47k with 5% (max) down, monthly payment $4700

Option 4. 30 year fixed, Interest 6.5%, total closing cost 85k with 10% down, monthly payment $5000

My strategy is to reside in this property with roommates for 1-2 years and then renting out the entire property once I purchase another one. I am also open to acquiring an investment property in the middle if there's good opportunity. Based on my research (including RDPD), it seems that minimizing the initial down payment and using available cash for further investments is what's advised (+ pull more money from refinance when the value increases later). If my goal is to continue investing in real estate and consider refinancing when mortgage rates become lower, would Option 3 be the most suitable choice for my circumstances? If Option 3 is not ideal due to the risk of balloon, is Option 2 the best?  Are there anything else I should be aware of?

I know there's no single correct answer but would greatly appreciate your input and guidance as I'm a bit nervous with my first big purchase. Additionally, if you have any recommendations for professionals I should consult regarding these decisions, please feel free to share. Thank you as always!