Hello @Benjamin Andress did you know there is currently A LOT of free down payment grants in Minneapolis and St Paul ? The money is first come first serve and will dry up eventually. This is what I did for myself and what I do for other like the couple @Bruce Runn mentioned!
Use the loan that I used; 3% Down Payment and NO Mortgage Insurance (yes this loan really exists). This will make your monthly payment way lower than an FHA Loan. The only loan other than this that I know of that would allow less down-payment would be a Veteran Loan (Vets only). Once you add on all the available down payment assistance your actual cash out of pocket is WAY less than 3% down.
2. Don't start with an FHA Loan, instead use it for your 2nd Duplex...because the 3% down loan that I used requires that you do not own any other homes at time of closing. So start with that one, then move to a 3.5% down FHA. Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work. FHA does not mind if you already have another home as long as it is not already FHA…make sense? That is why you start with the loan I used then move to FHA next. So if you follow that order you can maximize your options with the least amount of cash invested.
3. Now that you have exhausted your Low Down Payment Options (the one I used and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.
4. The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now since he has 2,400 from each duplex in gross monthly rent.
Be alert, if you time it right you might be able to get down payment assistance/grants there is over 10,000 in Minneapolis and St Paul right now (I got $5,000 from a local program and used it to buy my interest rate down to 3.125% which is way below typical market rates for a Duplex). There are also many down payment grants for first time home buyers in various cities around the US. My 250k Duplex total payment = 1,480 and the lower level pays me 1,200 while I live upstairs.
Keep in mind that this 4 step process I outlined takes time (anywhere from 1 to 10yrs depending on the person) so keep the big picture in mind but don't let it stress you out too much. Send me a message if you have any more questions or need specifics and keep us posted on your success! GOOD LUCK !