Almost every program across the nation has serious restrictions on drug use.

I would also check their documentation to see if they have included the restrictive language that I mentioned above. 

I don't know how B2 is defined in your city's ordinances but usually zoning codes are more restrictive of multi-family and less restrictive of single-family.  

Oddly enough, the tenants that remain in the second unit have been there since 2010 and the youngest child is 7 now. 

They need to be able to support themselves and their families… Residency restriction laws can permanently separate offenders from their families and children who depend on them, or force entire families to relocate, creating psychological and financial hardship to innocent family members.”

Conventional at that LTV will have PMI, FHA has MIP, so the PMI can be more restrictive at the mortgage wholesale level for the originators, that includes all originators going that route. 

As for the properties themselves, I'm restricted to buying condos in buildings that have a "foreigner allotment" still available.

Okay this is an odd ball. 

Anyone can lose money on  a property at anytime but the odds tend to be in a lenders favor.The money tries to chase the most experienced for highest rates but investors do not like those rates.So finding someone very experienced that needs just 20k is not that likely.

., by "return OF capital" I mean exactly that...getting their investment back, which, oddly enough, can be defined in more than one way.I tend to define return OF capital in such a way as the investor is receiving a capital distribution of their initial investment through either a sale or refinance.