However, after speaking with some people, I have been considering using an FHA loan to purchase my first multifamily property within the next year or two (the inventory is slim, so I am on a long term hunt right now). 

The class "C" value add space is getting the most attention but inventory is getting scarce.

There is not a tremendous amount of inventory, but it may be worth keeping your eye on.

If the partner has a good track record, you could get a non-recourse loan but you still have to personally guaranty via the bad boy clause in the loan documents.As far as raising the money for the purchase, you would need to raise approximately $575,000 to cover the down and closing costs at a $2M price point, take inventory of your relationships, put a package together that shows why this is a good investment, and start calling your relationships to get an appointment with them. 

That being said, as of November, we only had 2.4 months of inventory in Ventura County. 

Building up from 2BR to 3BR is nearly always profitable; from 3 to 4 is usually still very good, depends on existing inventory and demand in the local market.For a flip I would be leery of converting a garage into living space, especially if it is the only garage space, unless it is too small to fit any kind of car and the house otherwise had only 1 or 2 beds... and if the numbers really work.

Inventory is slowly increasing.

Hello @Logan Freeman and @Ryan FoxKansas City has added a lot of rental inventory over the last couple of years. 

Wichita came up to my interest since it seem like the inventory is more and the property tax is a lot cheaper.

Or, I just keep it and put it into inventory.