I think it would require a major asset heavy backer to provide the confidence the investing public needs to scale to profitability.  

Multi-family properties many times provide a better return per square foot than single family, which would be to your advantage as well.As long as you're mindful of the reinvestment requirements and purchase at least as much as you sold and use all of the proceeds, you shouldn't have any issues with this strategy.

You should require the tenant to carry $100,000 liability.

It does take 1-2 weeks to accomplish, so does require some effort and monitoring on your part, but sounds like you are a diligent self-money manager, so should be easy for you to accomplish. 

@Mindy Jensen I’m a GC and if you’re buying materials we don’t require payment up front.

The purchase and sale of a business requires a lot more personal involvement than the purchase and sale of real property.  

Fannie Mae has a requirement that if you want to use the rental income from the non occupied units, that you MUST have a current housing expense which means you cannot live rent free.

I wouldnt, so long as you have your requirements laid out - they should be able to know if it is even worth applying.

These loans require taxpayers to be current on all previous tax filings, highlighting the importance of expedited processes for obtaining necessary documentation, such as tax transcripts or copies of prior returns.

KNOWING real estate (or delivering babies) is a requirement for an expert.