Switching Primary Residencies to House Hack!

[Lucas Vanroboys]

I have a fully paid off property from an inheritance that I am looking to use to scale a Rental portfolio. The property is 3 bed 3 bath semi-detached SFH and is my primary residence. I am planning on getting a line of credit on this property while it is my primary residence (lower rate) for downpayment, rehab expenses, etc. on a multi family where I which I would then switch my primary residence to to househack with an FHA loan.

I would love to start a conversation on the legitimacy of this plan and whether there are any holes in it or not? I guess my questions are as follows:

The first one is regarding the timing and chronological order of HELOCing my primary residence before switching it to the multifamily for FHA loan.

The second one is a potential hiccup called "underwriters discretion" where the underwriter might flag my primary residency moving from a SFH to a multifamily. Talking with a friend in the space I was made aware that underwriters see multi-families as less ideal than SFH's and thus would become weary to lend on a move going the opposite direction

Any comments are much appreciated!

[Joshua Jones]

Thank you @John Warren. @Lucas Vanroboys when it comes to moving from primary single family to primary multi, yes some things come up. It really depends how we handle that current primary right not. Feel free to message me and we can do an in depth call on this as there are many facets to this. It's all about does the move make sense and can we justify it. Also, using the heloc may or may not be the best option with prime and 8.5% , you converting it to a rental and having floating rate debt on it.