My plan would be to live in one room and rent out the other 4 bdrms for one year, and then move out and use it as an STR.So, my question is, If I was to go the route of FHA, could the Lender take into consideration that I would be renting out the other rooms to help with the monthly debt?

If not, hopefully you have a professional finance company that will help you to get resolution.Going the legal route is always an option and depending on the ceiling with small claims court in the location of your STR, it is very inexpensive to file but you may need to have someone attend in your place - call the local court and ask for assistance and clarification.Finally, not trying to sound preachy but this is often what happens when you try to invest long distance and have to rely on people you do not know and do not know you. 

I upped the ARV to $750k after putting $110k into the rehab, and am still seeing no cash returns for a decade, which is not ideal for scaling..I know that the private lender route is likely a road to faster returns to reduce my monthly costs, but I'm trying to find a path to having a couple deals in the portfolio before bringing on anyone else, more of a courtesy for limiting exposure/liability, create a track record, and building company value.

If you go this route, just make sure that if the buyer defaults on the payments to you (you still pay the mortgage) or the due on sale clause is exercised that contractually the deed is transferred back to you.  

Hello BP-I am evaluating the best route to fund my first flip. 

., overweighted in stocks, not enough income generating investments, etc).If you decide to go the passive route, my belief is that you need to vet the sponsor running the deal first, then the market the deal is in and then the deal itself. 

Saranto CalamisAddress: 1660 Route 112, Ste A, Port Jefferson Station, NY 11776Phone: (631) 928-7139

I was hoping to go more the investment route but the realtor I'm working with says that same five years rule apply to investors too.

I'm not sure if I'd go that route seeing as I'd be doing short term rentals to families when I'm not residing there.  

Getting a HELOC and a new conventional loan would defiantly be the cheaper route.