I don't think I can employ this strategy immediately because I have to stay in my current home for a year before I can get another conventional loan to make this strategy work (and avoid loan fraud?). 

@Jonathan Farber if you’re getting conventional financing, the banks like to see 6 months PITI.

Are the monthly payments we make to the lender for this year similar to what we would pay on a conventional loan?

@Mike Hong -  A portfolio lender will definitely be able to do a loan like this if you run into roadblocks with conventional financing. 

Find a good mortgage loan originator that can tell you the exact criteria for getting loans whether it may be a conventional or FHA loan for buying houses.

On the other hand, if you buy conventional, your cash on cash return is low around 7%.

I am trying to find a better rate for a conventional investment mortgage.

Not sure if this was the most conventional way or smartest way, but here we are.

Finance with a High Balance Conventional loan, 30 year fixed 3.0%, 10% down and a target purchase price of $850K.

So I am in the middle of reading David Greene's BRRRR book, and I have a question about buying property with Cash vs buying with an FHA or conventional loan and then refinancing after rehabing and renting the property out.Obviously cash gives you greater buying power (buying right is the most important part).