I did 7 deals last year from out of state living in Austin Texas.

I live in CA and drove that route for years to visit family in Phoenix, AZ. 

The FHA rules/regs (in particular the FHA self-sufficiency test) are applied the same across all markets, and I know for a fact that in rural communities across the country, and big cities that are not particularly desirable places to live, it's not a deal-breaker, I am not commenting on those areas. 

Live in one side and renovate that side, then after the lease for the other unit is up move into that one and renovate it.

Living closer to work saves time and money.

I also pay my mortgage for the house I live in.

Sometimes tenants bite, sometimes they don’t, but it’s worth a shot.Owner Move-In: If you’re planning to live in one of the units, you might be able to legally take it back.

,I have sold and been managing properties that are near the MIA and haven't had any complaints from residents who are living in them.

Strengthen Your ProposalDevelop a Business Plan: Include:Vision: Your goal of creating a micro-home community.Market Research: Show demand for affordable or small-footprint living in your area.Financial Projections: Break down costs, ARV, and anticipated ROI.Experience: Highlight your previous fix-and-flip and demonstrate your learning curve.Present a Solid Development Plan:What is the size and scope of the project?

Now you see how expensive dining and living rooms are that could be converted.