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? 

Invest in a Rental PropertyUse your equity: You could leverage the equity in your current home to purchase a rental property.

This is more than enough to do PML's whether you originate or purchase from a broker is up to you.

It means a $100k purchase, like a home, in 1980 is exactly equal to a $368,615.38 purchase today.     

I purchased a 4 unit in Dec 2021 in Pt Loma (Worth ~$2.5M then, now worth ~$3.4m). 

Purchasing all cash or using debt?

I was to purchase a house in NC, but due to some information that was not disclosed about the house, we decided not to buy it.I will be getting my due diligence  money back and asked for money back for inspections but seller refused.  

There are some HOA's that are in such bad shape they wont allow any type of loans and it must be a cash purchase.

Seasoning for ownership typically starts on the purchase date.

I'd have suggested a down payment assistance program for your first purchase.