Unfortunately this house I bought was in an FHA loan and as far as I understand it, I cannot legally rent out the house since FHA Loans are for owner-occupant only.

(That might be pushing it but if I just miss my goal then I have set my goal right.)I am good with people and numbers and I am not good with legalities (so I am doing alot of focus on that here on BP and in my own studies) I also saw I just missed the Olympia REI Meetup when will the next one be?

With the two units am I going to be restricted to investor or multifamily loans even though they cannot be rented out legally? 

Just looking for legal ways to keep my money!  

Here's the numbers:Purchase: 136k, 5% down = $6800 + closing costs and prepaid insurance will be roughly 10k downARV: 175-180k, have to see how the neighborhood does in the next year, my realtor firmly believes 180.Rehab: 15-20k, all done by us.So after putting 20k into the property, that leaves roughly 24k of capital gains tax. 

If I may suggest if you are looking for specific legal, accounting or some other specialty knowledge information my standard answer is based on my 25 years experience but with the caveat to always check with a local professional in that specific field.  

The legal standard, not your standard, is what a reasonable and prudent person would do. 

Oakland's leadership does not believe in any owners rights and with the free legal help tenants get, they might as well own your property.

Most folks do not do it legally, hence the name "bandit" sign.

I like most of what you said buy why don't you learn legal ways to raise money and forming Partnerships and buy apartment complexes?