The borrower gets the benefit of having access to capital fast and the lender gets the benefit of charging a higher interest rate and not having to pay taxes on the profit.

There are quite a number of things that can make utilizing an FHA loan more difficult such as more barriers during appraisal, appearance of low qualification/little cash, typically longer closing period, likely higher interest rate, and PMI cannot be dropped without a refinance if 3.5% down.That said, just chain 5% down conventional loans, and make sure your duplexes pay for themselves.  

By understanding the costs you may encounter upfront, you can take control of the process.Here are just a few things experts say you should be thinking about as you plan ahead.1.

If you want the "best" rate, be prepared to pay for it.

Are you planning to rent the entire unit at the 2nd year mark? 

I was planning on doing a BRRR.

If your doing an FHA and plan to stay in one side you have to figure out what that would benefit you.

I am getting started in real estate investing soon, and I want to plan for the best course of action.

I'd like to use this to make an "all-cash" offer on a SFR, and then convert that to a conventional mortgage to pay off the HELOC.  

On a 320k property Ill be paying 9k annually.