The 3% down is geared towards primary home (owner occupied).

Do one of us have to wait 3 years to owner occupy both units?

No, the “great divide” isn’t between residential and commercial, nor between owner occupied and rental.  

Basically, take out an FHA loan for a multi-family, get 20% equity as fast as I can, and then do it again.I would look into buying an owner-occupied cosmetic fixer upper in a great area that will experience steady appreciation and rent growth.

But there are risks....hopefully, they do not try to occupy the unit and you have to evict.

@John Friendas - Are you talking about a second mortgage on your owner-occupied property or your existing quadraplex?

Either way I'd cross over the Oct 2024 occupied period so I could preserve the possibility of tax free gain.

This would prevent the tenant from complaining that the window was broken before they occupied.2.

Some sort of owner occupied strategy (house hack or live in flip) is probably your best bet for a first investment.

@Brandon Walston - Every state has their own landlord / tenant laws, but I think pretty much all of them (or maybe even at the federal level), you must honor the lease that is in place when you buy a tenant occupied property.