Yes - You have two options in terms of primary home - FHA 203K or Fannie Mae renovation loan for primary homes "Home style program".FHA carries a life-long MIP (Mortgage insurance premium .55x loan amount/12) plus a 1.75% upfront MIP 1.75% x loan amount financed into the loan> FHA does allow higher DTI ratios front and back.Fannie Mae - PMI falls off at 80% LTV- PMI typically has a lower ratio versus FHA ,55% compared to .25-35% for an example with good credit (above 720) it drops for higher Fico scores (less risk).Both loans can be a painful experiece for the buyer if there are any issues with builder, work delays, inspection issues after work/draw phases, and overall turn time from application date to close.

Your conventional, VA, FHA, or any primary loan options become unavailable.

So from a “cash flow” standpoint, CA is less favorable over other options, but if you buy right, time it right, and have a long term outlook, CA can provide some of the highest appreciation rates in the country and when you apply leverage responsibly, your total returns can be quite large.One needs to decide their goals and then have the abilities and desires to get there.

While you your first house hack may not cash flow, house hacking is still MUCH better than renting or buying a 1-unit property to use as your primary residence.

@Santos Lopez welcome to the forums, in general weather a market is "good or bad" is more a question of what your definition of a good or bad deal is and what your goals and parameters are to determine success in your investment. 

Purchase price: $103,000 Cash invested: $160,000 Turned into our primary residence.

:My main goal is to create more cash flow, so if you were in my shoes, would you try for the 3rd deal using a cash out re-fi on either of my two current rentals, if that that 3rd deal's numbers look like this? 

My goal is to share as detailed as possible the process of my investment, to share my experience and who knows, maybe there will be investors interested in trying something new.

The decision between a residential or commercial loan depends on the nature of the deal, and I'm seeking guidance on which avenue suits my investment goals. 

My business name is Rebalanced Homes LLC and my goals are to invest in real estate for the purpose of fixing and flipping.