I really want to house-hack with a multi-family property, but I want to know if I’m wasting my time even considering it given the local market.

I went to ASU and also invest myself in multi family and know a lot about the Tempe/ASU SFR market.

Then you can use the money as a down payment on a property; factor 20% for a SFR and 25% down for a multi family (duplex and more)I had $50k in a SDIRA, but found that the hassles of working with lenders in an account like that just wasn't worth it; I rolled it into my current 401k and took a loan against it.But with the amounts you're talking about, you might just be better off taking the hit now but freeing up the capital to work unencumbered with the limitations found in a SDIRA.Just a thought.

Is owner-financing preferable to FHA financing a small multi?  

Having grown up, and now work with a family that owned/owns several multi-family properties I trualy have a grasp of this market and what it has to offer.

Plus a 8 bedroom or even 6 bedroom house is normally considered a party house, because it's exactly what the partiers are looking to rent...the bigger the better.... so you better screen extremely well.

I have 7 multis, and rarely get noise complaints.

What about purchasing a multi-family property (2-4 units)?  

If you are not prepared to move to a multi plex property to begin your investing you are not ready to invest.

We're looking at single family homes and small multi-family homes, and right now I'm focusing my search on the South Wedge, 19th Ward, and the East Ave/Park Ave area.