Let's say 3 young single guys want to buy investment triplex.  5 years later your credit is all tied up in that triplex so when one of your partners gets married and has kids and his wife wants to buy a house for the family, they can't do it, because his name is on that investment mortgage. 

However at least in our market you have to have POF or Strong letter from your bank to get the seller to allow you to go into contract subject to entitlements.. then you need usually 50 to 100k in EM to tie it up.. then you need another 50 to 100k or more for entitlements.. then you go into contract with one of the national or regional builders and then you pray they will close on time. 

If so, does it also tie up the tenant's ability to obtain a moving permit?

Larger deals tend to trade in retail at higher cap rates.What you need to decide is how long you want your money tied up into a deal (their exit strategy), and how much you want to place, and if you get cash flow right away, partial, or none until certain metrics are hit.As an example you might get 8% preferred return but upside might be more marginal than a small retail turn around deal where exit is in 2 to 3 years and equity multiple is likely much higher for overall return.

In particular, in desirable areas, for permanent/good financing, often 25% down doesn't cut it. 

Cut Fed spending 50%, now not eventually, NOW, tomorrow.

Entitlement might get tied up and you might end up needing a down payment though depending on loan amounts.Yes, you could also have a VA and an FHA if needed.

Cash will be getting progressively tied up in debt funds, small cap growth opportunities, international investing,  basic S&P and some held for a short-term debt basis to enter CRE. 

Those are the organizations that are highly likely also going to support finding their hires a place to live and if you can connect with them and become a preferred vendor, you've cut out the middle man i.e. furnished finder.

I believe the term is called "subrugation "  Where you cut a deal with a builder , he builds the house , when it sells you get paid for the lot .Dont sell at any discount