Quote from @Dereck Olson: Hi Nicholas,  Just a thought from the possible tenant's perspective, but filling out a prequalification form and/or providing personal information before they have even seen a place and know if they will be interested in living in the property might be a bit too much to ask. 

So it does appear to be possible to get an FHA 203k loan for a 5-unit & convert to a 4-unit.When possible, aim for the Limited (aka Streamline) 203k loan, as it's less complex, not required to get an FHA consultant, etc.Of course, this is based of the two following important assumptions:1)  zoning allows for this2)  and obviously I owner occupy for at least 12 months3)  the total purchase price + renovations are within the FHA loan limits specific to my areaWhat I'm confused about is the timeline or chronological order of the process? 

Plenty of people invest remotely, and as long as you have modest expectations (not chasing the highest possible yield), and are using light leverage, and don't get suckered into buying in a part of town that you wouldn't feel comfortable visiting in broad daylight, plenty of people do this and do... fine.

This is especially true if you're trying to buy in the best location possible.

Another possibility I looked into is simply leave the current SFH as is since we have long term tenant, but build ADUs on the lot.

I have a seller who wants to sell a house that is worth roughly $830K.  They just bought it last year, so not much equity, still $760K on the mortgage.  They would be resistant to a short sale.  I'm wondering if there...

Is it possible? 

Hey all! Introducing myself here; I am a former biotech scientist turned to real estate professional. I interact with first time house hackers / seasoned investors on a daily basis. Wanna know what they have in common...

@Aristotle KumpisI think the short answer is... very difficult.As @Chris Seveney said, is it possible? 

What if I consider DSCR, would it be possible to use it?