But I know many people that buy non conforming SFHs converted into 3-5 units for 600-1m and do well.

I have a 2 part question: 1. Can you refinance a non confirming loan (its currently a 7 year balloon) We will full payment in 5-6 more years. If yo can refi, any suggestions on with whom? 2. I want o take my old 401k...

Account Closed many of these properties are non-conforming from an underwriting standpoint.

Most states conform with this as well.A 1031 is a tax deferral strategy that is great for investment properties, but there are strict requirements that must be met. 

@Cody Hunt, For that size property you're going to be able to get a conforming FHA loan if you want. 

Of course some non-conforming code issues do NOT need to be addressed if there is no renovation. 

Self fund small projects to reach money flows post rehab with CO and a lease and then, hopefully, refi long term if you are conforming to GSE underwriting standards.

So buying power has decreased significantly for this program, but the 5% down is still available.FHA is still a strong tool especially if underwriters would start to count non-conforming units into the total unit count. 

I own and occupy a multi-family in the city of Chicago with, like most multi-families in Chicago, an extra non-conforming unit (typically called 3+1).

@Kayla Holbert, a conforming loan (i.e. the typical consumer residential mortgage loan) owned by Fannie Mae may be eligible for transfer to an LLC - under certain conditions described in section D1-4.1-02.