FHA Multifamily - Tenant Occupied

[Carlos C.]

Anyone in NJ used an FHA to househack a multifamily home? Plan is to buy a multifamily unit and live in one unit and rent out the rest. However, the property we are looking at has tenants in the other units and we have been told that they intend to remain in the property. We don't really want to move into the property with other people in it since we would like to remodel and renovate all of the units before renting them out and as well just to improve the overall look of the house to be more in line with our tastes. Has anyone done this in NJ where it is a very pro-tenant state? My attorney also told me that cash for keys is technically illegal here in NJ so she advises against it but knows that its done under the table by others as a "moving fee".