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? 

Investment loans generally carry high down-payments and costs.

With the right tax strategy, you can maximize deductions and reduce liabilities, while having the right insurance and reserves in place will protect you from unexpected costs.By Implementing a quarterly financial review to assess performance and make adjustments to avoid cash shortfalls.

This would update the house and consolidation our loans, but we are trying to get out of the middle class trap so we want to purchase our next rental property.

I locked a DSCR loan yesterday at 6.385%, 75% LTV.  

But, insurance costs are likely to rise, making getting mortgages for most people even harder to get.What is likely to happen is more creative financing going forward, private lending to increase and smaller houses being built in the future. 

I have several different loan products but my most popular one is the new joint venture product that hasn't been out very long.

When house hacking, consider the area's average rents, property values, and financing options, such as FHA loans or conventional loans, which may require as little as 3.5% down for multifamily properties (if it's owner-occupied).

Let say your lender will lend to you at 75% of the After Repair Value(ARV), so property worth $100K, max lender will lend is $75K or 75% Loan To Value(LTV)Your deal, after purchase and repair should be at or below the lenders LTV. 

Quote from @Kate McDevitt: I agree with Chris, get a loan for rehab..