Again, it’s a great program, but you do need to be able to come up with your down payment for your next deal since that 3.5% is the lowest you’ll ever be able to bring to closing thereafter.

In more expensive areas, house hacking will net you lower monthly expenses vs. renting, but may not bring cash-flow. 

But if you had neighbors that reported it ever that wouldn't be a fun experience (I bring this up as I was under contract on a deal in the Peninsula and ended up walking over this issue).In regards to a live in flip, finished square footage is valuable in the Bay Area.

If you have a equity partner before you get the loan then you all deal together for the loan but bringing in an equity after you already have a term sheet might not work. 

Bring in the financing aspect, a whole new ball of wax.

You will have a much bigger jump in costs once you go over 2 units due to the change in building code (going from IRC to IBC), which brings in all the costly fire and life saving stuff. 

Stainless steel, biggest kitchen faucet, shower heads.Granite or quarter counter top are expected to bring in a higher price, flooring.

I buy turnkeys (my personal choice) so I wouldn't bring in extra cash if appraisal comes in lower.

@James Wise Would a realtor still be able to bring me cheaper than market value and off-market properties like wholesaler would?

But since you mentioned it I just felt like bringing out the point in General, that when people follow a rule they need to think in to it, because sometimes it can be slightly different  by the amount of kids in family, or in your situation where they pay more bills etc.