The purchase price would be $150,000I plan on using FHA or conventional financing through a small local bank, the Property is currently being remodeled and should be rent readyI’ve accounted 8% - repairs and maintenance 8% - Vacancy9% - capital expenditures 10% - management fees I think this might be a little much for expenses but I want to run the numbers conservatively.

Conventional mortgage Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Should I use conventional or fha?

There are lower down conventional programs for owner-occupier.

Second, commercial lending isn't as complicated as it seems and in many ways easier than conventional because less regulation.

I understand the strategly of having less people on the mortgage to qualify for more conventional loans before maxing out. 

If the property was purchased using an FHA loan, why don't you refi into a conventional home loan and then go purchase another property using the FHA and house-hacking the new property. 

@Chris ElrodEither buy it from him with conventional financing or see if he will lease it to you and allow you to short term rent the property.

I bought the house with a conventional loan and put 5% down.

Assuming you went conventional with 20% down when you purchased and yielding $175/month cashflow or $2,100/year gives you a ROE of 2100/35,200 or roughly 6%.