With myself as an operator I would offer the following: underwriting the deals, a detailed scope of work, a detailed material list, the labor, and the management.  

Follow her basic guidelines and don’t make any investment decisions on hunches or emotions.  

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? 

Thanks for following up on this thread and sharing your actual experience.

We all need a solid strategy and we need to follow it, no exception.

The loan on this house is $1,200,000.I moved in to my new primary residence by the end of the month.Starting July, my original primary residence was available as a rental and was being shown to prospective tenants.My new tenants signed a lease that began a couple weeks after showing, in July.To calculate my primary residence mortgage interest deductions, i'm using the following formula:650,000 / 2 = $325000 loan from January to June1,200,000 / 2 = $600,000 loan from July to December$750,000 limit / (600,000+325000 total loan value)  = 0.81 multiplier(0.81 * $X first house interest) + (0.81 * $Y second house) = total interest payed i can deduct from my primary residencedoes this look correct?

Following to read people’s thoughts.

Let the DST pay the Registered Rep the upfront 5 or 6%, but be sure you are aligning with a rep that truly cares about your business and follows the investment and keeps you informed through its life.

If the tenant isn't following the house rules and fails the room inspection then his/her lease isnt' renewed. 

Following this