Note if you go over 4 units, your valuation will be based on NOI and comp rate.  

Quote from @Charles J Sabo: This will be huge for house hackers out there. 95%LTV on 2-4 unit properties.

One other thing to keep in mind is that you have more financing options on 2-4 units than you do on 5+ units.

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.

You should start with a focus on a 2 unit multifamily property in a market that you can afford to get into. 

Squatters are a real problem nationally and a study found that they target not only vacant properties but those advertised for rent or sale that offer 'immediate occupancy.' 

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.

House hacking can work with an FHA loan, as rental income from other units might help you qualify, but be sure to consult with a lender or mortgage broker to explore flexible options based on your unique situation.Good luck!

It may be helpful:I can give you some general info on insuring the property:Here are some things to look for from an Insurance prospective:1.Any in-ground tanks (active or inactive)2.Any Knob & Tube or Aluminum Wiring3.If built before 1978, does the building have Lead Safe certifications4.Any wood stoves or secondary heating units.

having a local commercial Banker is key I would never go with a national HML for construction.. unless I absolutely had to .. like right now I am at 1/2 point and 7%  for my vertical loans no junk fees and my bank even pays or the appraisals . :)  these are not credit score loans ( I mean I have a credit score) but thats just a formality its all about capital and relationships with your bankers and deposit relationships thats key as well.Yes your relationships with sub contractors will be a huge factor in profitability, both direct and indirect.