The hunt for the 4plex with FHA Financing

[Joe W.]

I'm looking to purchase my first property and I want to get a 4plex using FHA financing but it is becoming increasingly difficult as most of the properties I find that meet my criteria (not in the 'hood, exc) and FHA criteria seem to get multiple offers on them and mine is weak (only putting 3.5% down and is contingent on the owner kicking one of the tenants out if it is fully occupied so I can move in).

Couple questions:

1) I'd like to stay in the nicer (non-ghetto) areas when I purchase a property but I'm wondering if investors with experience in multifamily care about this. Is cash flow the bottom line and (within reason) you don't care where the property is located?

2) I've seen properties outside of my desired area that based on the listing (I know this needs to be verified) would cash flow but yet they sit on the market for extended periods of time. I could investigate these properties but I feel like even if everything checked out I must be missing something because why wouldn't a seasoned investor have bought the property already?

I feel like either I have to keep making offers on properties I like or start down the path of making an offer on a property that others seem to be avoiding. 

I know there are a few people here who have used FHA financing to buy 4plex's and I'm wondering if they encountered any of this during the process.

Thanks, Joe