And if anything I'd see those things getting worse, not better. 

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? 

This can be a great way to get leads on off market properties.

You can get something that's turnkey or new construction at this price point, and most importantly, there's a strong tenant base ready to rent out these homes.

issued guidance saying that you can use LLCs if you get approved to do so.

I both personally invest in real estate and help others gets started/expand their portfolios in various Midwest/midsouth markets.What I do with my kids: My wife and I have 2 of our rentals that are on the same street, with a home in between them.

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

RentRedi is great because they provide our members with 1 to 1 support and onboarding to help get started. 

One day I get an urgent text message from our tenant that one of the trees is on its side leaning and wanting to fall into the neighbors home!

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.