Now, I believe I need to go Conventional cz I'm looking at 2-4 units and would need 5% down?

So with an owner occupied house and traditional financing you can put as little as 3.5% down on a property to purchase it.  

Or have you discussed extending the loan for another year in hopes rates go down.

Upfront expenses and monthly payments must be considered when calculating the return on your investment.EXAMPLEYou cash out $100,000 of your equity and use this as a down payment on a $400,000 investment property.

My concern is the rough looking Valero corner gas station plus area around the gas station coming off the highway exit to go down the street into the Lennar subdivision. 

I tend to get frustrated when I keep telling people that you can buy large multifamily with 0% down.

I have an investor that will loan the down payment and so I am going in on this deal with no money down.

Hey @Henry Lazerow - I would tend to agree that most of the NW side of Chicago 2-4 units don't play out perfectly well for BRRRR deals.I always looked at any potential house hack vs. having to rent - if my overall payments were less than the rent I generally considered that a win.For me...the house hack is just the ticket into the amusement park and then the fun rides come after...getting started can be overwhelming and hard so I can see why people might take a discount.I think one of the keys to strong equity creation is square footage creation which is basically what you outlined with duplexing up or down.

Depending on where you want to buy there might be better loans than FHA, BBVA for example has a nice loan called HOME that has something like 3% down and no PMI, depending on your income and where you want to live.

Certain states do not allow your primary to be foreclosed upon for other judgments (for example I believe florida is one of those states) - they can still get a judgement against you for the delta though.But yes this is a concern that every person should realize, which is also why you see many of us here on BP telling people to make sure they have adequate down payment and reserves before they get into something they have never done before.