How to house-hack a SFH & convert to 4/5 unit property?

[Anthony Ciulla]

Hello friends, an hoping for advice or to vet this opportunity/desire to purchase, rehab, and hold a SFH. Location is 1 block from beach with water views-very desirable to rent out. Currently is a SFH (unit #1) with a studio apartment attached (unit #2). Current owner built a two-level deck / large balconies with plumbing and electrical. Obviously started to build these as units 3 & 4 but never completed and converted to view decks instead. I'd like to complete. Plan is to live in main house, rent out unit #2 and rehab units 3 & 4.

I hope to use either a 203K loan or hard money lending. Get financing, purchase, rehab for 6 months, use that time to locate and get renters (easy to do at this location), then refi into a 30y/fixed using ARV to help me fund.

My annual gross wages are $140K
Estimated purchase price: $820K
Estimate rehab: $60K
Cash avail: $128K (funded from equity in existing SFH investment/rental & 401K loan)
Estimated monthly income at full tenancy: $5,050 (not including my "rent" to occupy unit #1)
Estimated ARV: $980-1.1MIL

Questions:
Is this a realistic scenario?
Hard money lender or FHA 203K?
Can I expect a hard money lender to help me take on such a project with a large purchase price? i.e. Refi after 6-12 months?
If so, any recommendations?

I'm an experienced homeowner, landlord, and have done rehabs but not at this price range.
I believe my plans would allow me to occupy unit #1 as my long-term home for free. My anxiety comes from securing initial financing and if I can refi into a workable loan after rehab.

Any advice would be greatly appreciated and I'd love to post my progress on this going forward!