Trying to buy as an owner occupant, leaving your family behind to live under a separate roof, strains the limits of credulity.

Is there any way I can limit the risk?

FHA has a limit up to 6% of seller concessions based on the sales price or the appraisal price, whichever is lower.Seller concessions have to be approved by the owner because the property has to appraise at the higher value.An example: $100,000 with 1% seller concessions.

Traditional HARP loans were for GSE loans originated prior to May, 2009 and Fannie/Freddie loans were subject to conforming limits so, it wasn't a HARP loan if there was a refi in 2017 and for that amount although, if the loan balance was ten times lower?

@Christine H.To me, it would be a dealbreaker.Buying a multifamily on the basis of price appreciation is speculation.House price could keep rising and you end up making money (recouping some of your loss in the meantime) or there could a downturn and you'll lose more money when you decide to sell in.If you go ahead with the purchase of that property, you would have to feed that property with cash _every_ single month.Any expenses that you failed to initially account for will have to come out of your pocket.Increasing the rent might be difficult especially if you have tenants who have been living in the property who many years, because of the rent control.

Tenant’s use of such furnishings shall be “AS-IS”, and Landlord has not made, does not make and hereby disclaims any representations or warranties (including, without limitation, any warranty of merchantability or fitness for a particular purpose) as to the physical condition of the furnishings or the suitability or usefulness of the furnishings for Tenant’s intended use.

Is there a statue of limitations on this type of event?

Just my two cents... especially since you can just re-use your VA loan when you move (granted you haven't spent your limit on it).

There is also a height setbacks and sometimes a FAR (floor area ratio) which limits how much you can built.

But, once you get the hang of things, the sky's the limit from there.