However if you plan on buying 3-4units, there is a trigger rule for FHA, it is called the self sufficiency test.

I'm planning on living in it with, but if I convert part a 2nd dining room and entry room into a liveable bedroom + kitchenette, will I be able to rent this out even if the HOA says there's restrictions on renting?

Then they will have to pay off the plan early with the proceeds.

Locking this piece of property down might pencil depending your long term plans.

Even this in long run https://www.coachcarson.com/short-term-buy-and-hold-plan-buy...

If the SF's homes work out as planned just 10 homes @ $600/mth in month 61 will be producing $6,000/mth cashflow with NO maintenance / landlord issues except evictions if tenant buyers don't pay. 50 homes $30,000/mth.

Of course, I'm dumbing this down but it's focused on the gist here.Now, I planned on going long term buy and hold in a student housing market with SFH around the $100-150k mark.

The insurance replacement cost of $236K might be a bit overkill unless you're planning on burning the place down (just kidding!).

I plan to leverage an FHA loan to kick off my long term rental portfolio. 

I was planning to rent out the extra rooms in the unit I am occupying.