Buying an investment property with an FHA loan can be a great way to get into the real estate market. But there are pros and cons you should consider before signing on the dotted line! One of the (prime) benefits of using an FHA loan is that it requires a lower down payment than other conventional loans. This makes it easier for many people to purchase their first investment property, who may not have enough funds saved up for a large down payment. Another positive is that interest rates tend to be lower on FHA loans than other types of mortgage loans.

On the flipside, however, there are some drawbacks associated with this type of loan. For starters, depending on your credit score and income you may face higher closing costs compared to other traditional mortgages. Another concern is that you'll need to pay private mortgage insurance or PMI even if you put down less than 20%. Lastly, since these loans are government-backed, they often come with more stringent requirements when it comes to how much rent you're allowed to charge tenants – which could limit your potential rental income.

In conclusion, while buying an investment property with an FHA loan has its advantages such as low down payments and competitive interest rates; it also comes with certain restrictions like extra closing costs and stricter tenant regulations! Ultimately it's up to each individual investor to weigh out what works best for them and decide if taking out an FHA loan is right for their situation.(!)