An LLC resolution enabling the LLC to manage property that is committed as a capital contribution (from a managing member's property) would be another solution, but again check with an attorney in your state. 

I am a musician at heart and a real estate investor/realtor looking for a way to provide for my family, loved ones and to save for retirement.I current hold and self-manage a small portfolio here in Toronto.

I know, I know, we are all "business owners" who work "on" our business, not "in" our business, yada yada yada...) are aware of any tax strategy/mechanism that enables us to pay our health insurance premiums with pre-tax dollars as opposed to after tax dollars. 

My thought would be to get an excellent deal in the asking price to cushion against this risk enabling me to lower the rent per tenant over the next 10 years to remain competitive.

STEM (science, technology, engineering, math), medical, and legal are about the extent of useful degrees.I say that because if you're spending that sort of money (and six years of your lives) you should expect the resulting job prospects will enable you to pay back these loans.  

That will enable you to use the income from the other 3 units to pay down your mortgage, expenses, and maybe even cash-flow.

I saw that FHA loans can enable the buyer to obtain a mortgage with a smaller down payment(3.5%). 

If you think that you can, and act on that belief chances are you will accomplish your goal.So the message is simply this, when it comes to your real estate business, make sure that as a real estate investor and entrepreneur you develop a superior mindset that will enable your business to prosper and grow exponentially.

If I was a successful flipper, why on earth would I enable so much competition?

The only reason I can see for you to sell it (after rehab) rather than start your goal for passive income with this one, would be if you are SURE that its profits will enable you to get into even BETTER deals, that would otherwise be unobtainable.