Ultimately, my goal can be split into two distinct endgames.

There are mainly two distinct areas here in Fargo, ND. 1.

There are distinct differences in treatment between a duplex and a triplex and the only reason I can figure out is .  . . because that's how it is.Even FHA loans have a distinction around 2/3-4 units, where the requirements of a co-borrower change depending on the number of units.

In DTI calculations, this income will be added to your monthly income, not subtracted from your PITIA liabilities (very important distinction).The county conforming loan limits in LAC and OC are $1,243,050 for duplexes, so as long as the loan amount is $1 below then Fannie and Freddie can offer competitive financing between 15-20% down.

(This could be an important distinction).

Its important to make a distinction whether a property is a true "SFR" or has multiple units. 

The important distinction is whether the auction is for either property taxes OR for a mtg foreclosure….as each one has different legal implications, ie. redemption periods, what mtgs/liens/judgments, etc remain with the property and the new owner verses which ones get wiped out.

If you have a high credit score, PMI should be cheaper and you should get a conventional loan.Also, another important distinction is that mortgage insurance never comes off of a Gov't loan. 

@Linnea Minnema I drove through the area and there is a distinct difference from Crestwood.

@Anthony Dooley  Ok we can debate this and you have two distinct asset class's you have historic non appreciating areas or areas that have actually deprecated.. and you have historic appreciating areas.in historic non deprecating areas homes are NOT 500K  they are maybe 100k.. so with rents at 1000 a month for a nice home even in those areas.. owners can pay them off in less than 10 years.. never to pay again and have a nice nest egg and security and not have to worry about moving or someone telling them what they can  and cannot do.. you cannot put dollars on that aspect.. in areas with known appreciation IE ( HISTORIC) there is no question that these homes over time will do more for a person at the end of a 30 year run than a few rentals.. you would need to be in the rental BUSINESS to do better..