Which is why it’s important how you apply payment. 

My thought is to use this to make a down payment on my first property with a 3.5% payment.

My question is does this also include contractor cost and payment?

I established a team at location and would like to bounce my numbers off the BP community and would like to know if I am leaving anything out.PURCHASE PRICE: $195,000PURCHASE CLOSING COSTS $3,000ESTIMATED REPAIRS $50,000TOTAL PROJECT COSTS $248,000AFTER REPAIR VALUE $373,968DOWN PAYMENT $19,500LOAN AMOUNT $225,000LOAN POINTS 2%AMORTIZED OVER 1YRLOAN INTEREST RATE 12%NEEDED FOR CLOSING $25,000/ r

You'll be getting to your rental goals much faster, and with more money to work with.Keep doing this, until you are able to get those loans,  Then, keep flipping, but take the profits (ONLY) and use them as down payments on your rentals. 

Scenario 1: we purchase a 3-4 unit property with FHA 3.5% down payment, live in one and rent the others.

Can you take out a loan for the pool, buy the 3 houses, and let the cash flow pay the loan payment? 

He mentioned structuring his partnerships where his partner takes on the mortgage and down payment and both their names are on the title.

I would be careful of buying yourself cashflow, aka, placing a larger down payment, as well as betting on appreciation.

As of now I am renting with my girlfriend in Staten Island and have been saving for a down payment.