I currently live in WA state and invest out of state for buy and holds.

Live in one half, rent out the other.

Here’s why:Putting aside the actual physical danger of living in a fire prone area.

,I have sold and been managing properties that are near the MIA and haven't had any complaints from residents who are living in them.

In this case, you can use Rental Income from the units that you will not be living in and that income can count to help you qualify.FHA rates are going to be lower than conventional for you almost always, but FHA does have a 1.75% funding fee. 

Quote from @Roxanne Whitaker: Please be aware if you buy an investment property and do not live in MD, when you go to sell it you will pay an 8% tax at settlement. 

Hey @John FriendasI have purchased 4 of my Co-Living (rent by room) properties with DSCR, 1 of them within the last few months.Not that I necessarily recommend this, but there are short-term-rental DSCR products.

We live up in Shasta lake.

I would pull a FHA loan for $665,000 and live in one side and rent the other side out to a family member for $2,000 a month.

The answer is yes, but it is generally found when the owner is also living in at least one unit (aka "House Hacking").