FHA and living with tenants

[Tom Jones]

At first, when I read about the FHA loan, it sounded like a great idea, and I planned to hold a job for 2 years to meet the requirement.

However, the more I thought about it, the more it started to not seem like such a good idea. Namely, the idea of living with your tenants. It seems like you're s***ing where you eat, in a way. I would imagine that it's natural to become friends with people you live with. But this would be my first business transaction in the world of rental properties. It seems like becoming friends with people with whom you have a business arrangement might be extremely detrimental. I am by nature a kind person, so it would be difficult for me to lay down the law with someone who I become friends with. Maybe some people do not find this difficult, but I certainly would. 

Also, if things go sour, these people would know a lot more about you than if you just had a strict business relationship. 

I guess the more I think about living with people who are my tenants, the more I see very bad scenarios playing out. 

I was just curious about what other people's experiences have been if they've gone down this route.