First House Hack - What would you do if you were me?

[Erik Reis]

I currently am looking to purchase my first 3 family in which I would live in one of the units. I'm looking for a place that doesn't need too much rehab work as I have two small children that will be living part time, however, I'd like to continue to build a portfolio after living in unit for a year before moving on to a next property, building my portfolio.

The properties in my area that are in decent shape for a multifamily are around $550k. I currently have $200k to invest but would think I should keep some cash liquid to purchase another property a year from now? Just looking for some guidance from some of the experiences you all may have! After reading Multifamily Millionaire and The House Hacking Strategy, it seems like the tendency is to do a FHA 3.5% loan. Is that would you do?

Thanks so much in advance.