Unfortunately, it cannot be used for a 2-4 family property, only single family properties. 

The cost of a sewer line is the same whether it is on a triplex or a single family home, but with a MFU you can spread the risk.

A single family home with multiple ADUs cannot  be financed using Fannie, Freddie, FHA, VA, or USDA.

To answer the first big question in your post — single family vs multi-family — I am firmly in the multi-family camp.

The family purchased a lakefront property in a nice area three years ago but then ran into a series of issues, and have abandoned the place because of them.They are hoping the bank allows a short sale (asking for roughly $20,000 under what is owed)Here's what's made them so unhappy:Anytime they used the laundry it was dumping into a dry well, which would back up into the house forcing them to take their laundry to a laundromat instead!!

Meanwhile, gross rents of $1,800+ for 3-bedroom single-families is an achievable figure, so it’s possible to generate cash flow if you lever modestly.There’s a bunch of other stuff that’s worth highlighting—the economy, demographics, neighborhoods, new construction, and more.

You could potentially put as little as 3% down if it's a single family home and 5% down for 2-4 units.

Do a bit of digging, and you can find single-families in suburbs like Decatur or Meridianville that appreciate at rates above the statewide and nationwide average and hit the 1% rule at the same time.One caveat, though, is that most rentals in Huntsville proper probably aren’t going to deliver the cash flow you’re looking for.

I mean really, I don't even talk about my money with family members, some of them would be the last ones I'd say anything to, but the have an idea, that's all they need to know. 

., "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it.