Switching Primary Residencies to House Hack!

[Lucas Vanroboys]

I have a fully paid off property from an inheritance that I am looking to use to scale a Rental portfolio. The property is 3 bed 3 bath semi-detached SFH and is my primary residence. I am planning on getting a line of credit on this property while it is my primary residence (lower rate) for downpayment, rehab expenses, etc. on a multi family where I which I would then switch my primary residence to to househack with an FHA loan.

I would love to start a conversation on the legitimacy of this plan and whether there are any holes in it or not? I guess my questions are as follows:

The first one is regarding the timing and chronological order of HELOCing my primary residence before switching it to the multifamily for FHA loan.

The second one is a potential hiccup called "underwriters discretion" where the underwriter might flag my primary residency moving from a SFH to a multifamily. Talking with a friend in the space I was made aware that underwriters see multi-families as less ideal than SFH's and thus would become weary to lend on a move going the opposite direction

Any comments are much appreciated!