Can I use gifted money on a house hack?

[Carsen Gobber]

Hi everyone, my name is Carsen. I'm planning on getting into my first multifamily house hack this year in Lincoln, NE, with gifted money. My grandfather recently passed away, and some money has been given to my parents. They are open to me using it as a down payment. 

The plan is to use a 5% FHA loan, live in it for a year, and continue investing from there.

Is this possible with gifted money? Is there anything I need to be careful of when dealing with gifted money and FHA loans? What problems might I run into? and is there anything I should be paying attention to/how would you approach the situation?

It's difficult finding anything on these forums with someone in a similar situation. I appreciate the help.