@Sanjeev AdvaniTo me this is a common sense law as good landlords already do this.

Am I SOL or has anyone find a loophole or different product that will allow for this type of scenario?

I am sure some other BPers can chime in on this.Aside from potential owner occupancy requirements (FHA), there shouldn't be any legal issues in a lease and option scenario. 

This is more common for commercial (5+ units, often lenders in this category want the owner/operator to have experience self managing or hire professional management), and not very common 4 units and under, IME.  

This is a great place to ask questions about projects, scenarios, or get advice on areas that you aren't as familiar with.

Most common you will see the following for MAX LTV; 80% on purchase, 80% on rate/term refis, 75% on cash-out refis.

In cheaper markets it is more common to rent LTR (from what I can see, that's why the prices are lower).

Putting less down may subsequently put you in a break-even scenario or possibly even a negative cash flow.

You can receive commisson in that scenario but there are more steps than that.

Happy to run through some scenarios with you.