I would not allow it because that's too many occupants to share one bedroom unless the house is spacious and has extra room for them.

All three units are spacious with a nice layout.

Honestly, 900+ sq feet seems like it would be spacious for a 2 bed rental.

For example, “Large back deck.” doesn’t sound as attractive as “Spacious back deck perfect for a cookout with friends and family!”

Property = good basis, great upside on the spacious townhouse style with under market rents@Grant Rothenburger - over 100 unit renovations (kitchen, flooring, bathroom updating), roofs, tree removal, landscaping, water direction with new flumes, redo main water service from galvanized to PVC, cameras, lighting 

My buddy recently finished a 6 unit on the block and is getting around $1500 for a 2/1 and $1400 for a really nice and spacious 1/1

Then, after the obligated one-year owner occupancy period, we want to refinance it into a conventional loan in order to get another FHA loan for a more spacious 2 or 3 unit to live in until we eventually move on to full cash investments in other markets. 

I learned this strategy from my mentor who is a multi-millionaire real estate investor living in a nice and spacious apartment building in a great location. 

We put in new flooring, appliances, windows, painted exterior and interior, redid the bathroom layout to make more spacious and add a tub (it had been used as an office before so it only had an accessible toilet but a big footprint), added a laundry room to a rough utility room and updated all of the lighting fixtures.

We reconfigured the space and put in a tub/shower for a spacious full bathroom.