Multifamily House Hacking Using FHA w/ Co-Borrower/Occupant/Mortg

[John Michael]

Hi, I'm new to the site and would like some clarity on using an FHA loan for a multifamily house hack in my local area. I've read a little into FHA loans (3.5% down) and FHA 203(k) rehab loans. I understand they can be a great way to get into a first time buying opportunity, renting out the 2nd unit. I understand that both loans require 1-year occupancy and that you need 2 years landlord experience before you can deem the rental income as income when trying to obtain a second loan (either for another house hack or primary residence). That's why you can meet the 1-year occupancy and 1 of the 2-years required for landlord experience in this multifamily rental opportunity. My confusion lies in the occupancy requirements. I'm currently engaged and wanted to know how this requirement works if I were to obtain this type of loan for a rental with my fiancé and sister or just me and my fiancé. I think the latter is an easy on, we would obviously live together in say the apartment of a two-family. How would occupancy work if I were to buy a property with a sibling or even a friend, with me and my fiancé on the loan too? Could they (sibling or friend) just be the one who occupies the apartment for 1-year?