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? 

Can you give more details on your numbers, purchase prices, rehab costs, time to complete rehab, ARV, monthly rent?

Having said that, prices and rents are higher in the Bay Area in CA than many in the lower-priced states, so it might justify the investment a bit more..

I'd kick it to a triplex not duplex. build to rent will always be a good strategy. keep land costs under 10%, build less than $200 per sq ft stick frame, exit price you want a premium, work with someone knowledgeable.

Prices vary a lot from firm to firm, and you can never compare it apples-to-apples.

TERMS- Deal Type: Seller Finance- List Price: $580,000- Purchase Price: $780,000- Seller Carryback: $693,000- Total Entry: $100,000 Breakdown: Assignment: $13,000 Down: $87,000- PITI: $2,657 Breakdown: Principal & Interest:: $2,000 Taxes: $464Insurance: $193- Rent: $5,250 ($750-800 per unit)- Amortization Years: 28.88- Interest rate: 0%- HOA: NONE- Balloon: NONE- EMD: $5,500- COE: Feb 12, 2025- Occupancy: Occupied, Occupants staying post closing- Title company: PROPERTY DETAILS:MULIT-FAMILY7 Units - 2B/1B per unit- Living sqft: 5,200- Year Built: 1940- Age of Roof: 1- Age of HVAC: New- Age of Water heater: New- Condition of Electrical: Good working condition- Condition of Plumbing: Good working condition

Two of your questions will be more situational and location based.We don’t ever haggle on pricing, although I would suggest being flexibleWe check credit, criminal history and everything that goes along with that, evictions, and income.

from my advice rural properties and developments aren't successful and you are climbing an uphill battle. sounds a little niche. we focus on developing and not reinventing the wheel. if this is truly what you want to focus all your time and energy on then visit the closest 5-10 of these that look like the ones you are interested and ask if they'd expand or build a secondary one. do a lot of research before you just take action 

The short answer is being a middleman between a buyer and seller and you keep the difference in price.

The strike price follows the declining principal balance of the underlying mortgage.