My name is Richard Pennington I am in the Raleigh North Carolina area seeking any advice on using an FHA loan or conventional  loan for my first investment property.

@Brandon Vukelich: I totally agree: STRs provide the cash flow I need, but policy risks and market saturation make me want to diversify.

The first is the interest rate, my guess from the information you gave is that the loan is about 6% which isn't all that bad, but high enough to consider paying it off versus investing in some S&P 500 etf (depending on your marginal tax rate). 

Investment Info:Small multi-family (2-4 units) private money loan investment in Los Angeles.

Purchase price: $680,000 Cash invested: $510,000 We funded this loan in 48 hours. 75% loan to cost.

@Terry Majchrzak you can certainly do a "subject to" on an FHA loan but FHA loans are also "assumable" too. 

Unlike other state, it does not provide an amount that is the minimum offer.

Another reason the subject-to loan was so helpful.

The 16% ROI includes the loan pay down after year one coming from the amortization schedule along with breaking out other ROI considerations. 

I contacted State Auto, and they initially said that foundation issues were covered and provided terms and conditions for that.