I live in a slightly more expensive area (Salt Lake City) where a duplex may generally go for around 250k+  I was thinking about a first rental to be a duplex financed with a FHA loan to allow for a lower down payment of 3.5% because at my age a 20% down payment of 50k is not easy:/(not only that but renovation costs as well) I was hoping to live in the duplex for a year (to meet FHA rules) or two to qualify for tax free capital gains if I choose to sell within 5 years and to rent out both units after moving out.

Nothing wrong with that but take any of that advice with a grain of salt.

Please take what I say with a grain of salt as I would strongly encourage you to reach out to individuals who have kept an eye on this market for years (@Jim Paulson, @Shannon Robnett). 

This is only one method, there are countless others.Take all of this with a grain of salt because I've never done this before, but this is the route I'm taking.

@Kaity PariThe $10,000 SALT limitation only applies to schedule A for personal state and local taxes paid.

So take both of their versions with a grain of salt because you'll never know what really happened.As for how things would turn out between you and this landlord, especially when it comes to how repairs are handled, that is going to be heavily controlled by how the lease reads. 

If the Democrats win the Congress and White House in November there is a good chance you will see the return of the unlimited SALT (state and local tax) deduction.   

I would take anything they say with a massive grain of salt unless they are serious investors themselves.   

I really want to get a duplex or fourplex, probably in the Salt Lake County area. 

I've never done HML, only FHA and VA,but I've talked to a number of HML so take my advice with a grain of salt.