They didn't want men gambling away the house in a poker game and leaving the women and children without a place to live.The intent I think for a home to be designated your homestead is that is where you live. 

It's all a game.

So all the things stopping you in single family are still true in multi syndications as well.Mortgage rates don't make sense for many or even most deals, but coming down some, so more deals will pencil. 

It's not a zero sum game and they don't have anything to gain by telling you straight, ie they're not going to tell you it's a chump fund if the underlying structure is solid.

@Nikhil MascarenhasDifferent people go different routes depending on their risk tolerance, their amount of equity and compared to other assets owned, how patient they are with a complicated set-up and high legal fees, whether they view the $800 as game-changing or just a cost of doing business, etc. 

Hi all, hope everyone is doing well and just wanted to introduce myself, returning  from 2005-06 when we did few flips (3) and few rentals (4) and learn some do's and do not's. Difference this time for me is hard mone...

This is very true.

Is that just the way the game works?

You could still potentially qualify for FHA 3.5% down, but if you are looking for true Fannie/Freddie financing then those are the guidelines they set. 

Not that I'm aware of....you need skin in the game.