You can probably just go ahead and live in that 5th unit, but I believe whenever you go to refinance it with a bank or what not, the 5th unit will make it require a commercial loan and not residential regardless of what the county records show the property to be. 

No back payments due, but there is a HUD loan for $7k from a previous forbearance.

@Tina Artigliere@Alicia ProkosFor these Quest Solo 401k plan account holders, what is essential is to find a new Solo 401k plan provider who offers a Solo 401k plan with the service and features that the account holder needs such as Solo 401k loans, alternative investments, Roth and Mega Backdoor Roth Solo 401k contributions, 5500-EZ & 1099-R preparation and filing, etc.The process entails restating the Quest Solo 401k plan where the Quest Solo 401k plan documents are replaced with the Solo 401k plan documents of the new Solo 401k provider. 

@Robert QuirozIf the owner already owns the property without a loan they can cashflow the property even if rents are below market.

Initially, this might seem like a great idea as you can maximize rental income by renting out bedrooms kind of like college student rentals.

I started 23 years ago and bought my first property with 3.5% down using an FHA loan.

Does anyone know anyone that does 5% for a vacation home loan? 

Long story short I have never put more than 10% down on a loan and I have never use FHA.   

WE dont pay a fee for the credit line as I mentioned just 1/2 point for each new loan..

What loan terms are currently being offered for these type of rentals?