HUD.GOV is originating source for FHA loan info.

As a foreign buyer, you are to look for 2 things in particular: the temporary foreign ban (which they keep pushing further back) and the source - The foreign purchase ban which applies across the board. yes there are exceptions but if you are not a Canadian tax Resident (which it seems you are), you will need to look for communities where the population is less than 100,000 in general. - Another exception to note on that foreign buyer ban is the number of units/doors for your investment: I believe the magic number is 5+ as this would be considered as commercial Real Estate- In Ontario, you will also have to look our for the Non-Resident Speculation Tax (NRST) which imposes about 25% on the purchase tax.

I’m also fairly new to investing and this would be the biggest property that I have the opportunity of purchasing so all suggestions are welcome!

And if this is illegal in some states...what exactly is illegal about finding interested investors and matching them up with a funding source?

Maybe the biggest "risk" might be the fact that you cannot occupy the property at all so technically if you run into hard times and need to move into the property thats not intended - but no real more risk. 

Happy to chat...being a local GC takes out a lot of the risk of the biggest variable for most investors (unpredictable rehab costs) and also allows you to consider more options than the average investor, with your rehab costs being significantly lower.

If section 8 pays $1,500 a month, then other gross income sources in the above example (if 3x income ratio is allowed) need to total $4.5k per month. 

Also, my biggest question on the IRRRL is does the IRRRL just lower to whatever the current market rates are?

@Matt Wanyes but... is that actually your biggest concern? 

My biggest piece of advice would be to find someone who is in the position you would want to be in 10, 15, or 20 years and meet for coffee.