Can you cash flow with FHA 203K/203b or Homestyle Loan Property?

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I live in Northern California and am plotting my investment strategy for the coming 2019 year. I've been floored by the prospect of a 203K / Homestyle loan, but have yet to crack the code on how I could make it cash flow for me with only 3.5%-5% down (in the Bay Area at least....)

After speaking on the phone with a loan broker, I was told that you could go as far as building an entire property with a 203k loan as long as there is an existing foundation. I believe you can even pull the FHA Duplex Loan limit to turn a Single Family Home into a Duplex.

My gut tells me this is a very powerful tool that I haven't cracked the code on fully, just yet. I'll list several of my questions and if anyone has experience or thoughts, feel free to tackle any or all of them.

  1. Has anyone found a good way to cash flow with these loans?
  2. Has anyone ever built a home from scratch with an FHA 203K (acquiring land with just a slab on it?)
  3. Has anyone turned a SFH into a 2-4 unit building with a 203k?
  4. In a market like the Bay Area where the price to rent ratio is 38.5 - 45.88, is it cheaper to build vs. buy existing? 

@Patrick Nissim the 203k loan is a powerful tool, but it has some pretty significant limitations in the multifamily space. I just had a client close on a very nice 3 unit in Berwyn, IL using an FHA 203k streamline loan. I also have had two 203k deals fall apart in the past 6 months. The thing with these deals is they are way more complicated than just buying a fixer upper an renovating it. If you can, use a "streamline" loan which has the least amount of red tape. The streamline loan allows you to buy a property that is beat up using an FHA loan.