You could always get the extended warranty and still save money over the 3k model.

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? 

At least you'll probably get most of your money back when the deal gets refinanced or sold.

Get plugged in. 

I know its not a huge spread but like I said I wanted to try something new.Hey Jonah, Congrats on a good deal, to only need a few cosmetic touches and to get that nice little bounce in value is awesome.And 7% is probably a pretty solid estimate (usually based on FICO) but I think the important question that you are asking is what is your long term strategy with it?

If you’re working with an experienced agent, they can provide some referrals to help get you started.2.

If the issues can be resolved, I will need to get another quote but this should give an idea of the CA FAIR.  

@Paige Gardner HM is a great way to get started however understand that it is SHORT TERM FINANCING 6-18 months. 

If they gift it to you- you get their basis. 

Nice job getting a good return either way!