You can 100% use an FHA-203k renovation loan on multi-unit properties up to 4 units. 

However, I do have a lender that can conduct an entity transfer with a commercial loan from 2 units and up.

One-person rental units are in the highest demand, and co-living directly appeals to this market.

Investment Info:Small multi-family (2-4 units) buy & hold investment.

Quote from @Jaycee Greene: Hey Jaycee, we currently lend on several loan types: Fix & Flip up to 90% LTP, BRRRR, New Construction, Bridge Loans, & Multi-Family.For myself personally, I'm looking in the Orlando, Philadelphia, and Southern NJ markets, 1-4 units.

In fact, right now I'm looking to BRRRR a 10-30 unit building/property if I can find one!

Investing in  2-4 unit properties within the Dallas-Fort Worth metroplex would be ideal but I am also interested in other potential deals, that fall within the 2-4 unit range. 

Give them a couple of options, they already know the unit got foreclosed, most people move to avoid the hassle. 

Strategy 1: buy a duplex, live in one unit (for one year as a "primary residence) and rent out another unit as a short-term / mid-term rental on Airbnb.

Highest number of units without getting into commercial buidling codes at 4 units you have additional engineering requirements.