@Ari Lagunas I would chose the 95% OO loan over the higher FHA LTV due to fha sustainability rules (applies for more than 2 units), fha stringent criteria regarding condition, and fha rules regarding PMI.  

And that rule doesn't apply to someone who is not a real estate licensee." 

So, as a rule of thumb they might be considered at half the value per square foot as above ground space.

While I’ve been involved in much of the process, and I know Hawaii’s rules, regs and other intricacies well, I have never obtained investors, never signed contractsI and never opened escrow so I feel like I’ve been more of a spectator… I’m basically starting from scratch and I’m a bit nervous. 

The Rules... its a turn off.

There are rules to follow!

I think that company might have rebranded but I did get calls from a few borrowers wanting help.. but one cardinal rule is never bail out another HML

Grouping allows you to treat all your real estate activities as one, making it easier to meet the participation requirements for the syndication loss you received, even if you’re a limited partner.However, using that loss to offset the capital gain from the sale of your investment property depends on passive activity rules.

I think it goes back to your original statement  each state and then each county can have different rules for how they handle these funds.I know Oregon likes to gobble them.. 

Additionally, you have to be disciplined to spend less than you save and keep in mind that you're paying I/O on the principal balance v/s chunking down principal, albeit minimal in the initial years, which goes against the Dodd-Frank rule for qualified mortgages for homeowners