Maybe it is seen as "taking too much" or there is a technical aspect that makes it hard.

I don't know, I stopped wholesaling as a main aspect of my business model, I wholesale properties that I pick up but don't want to do anymore because I get better deals, so I am on the same boat asHow is the market down there in Jersey?

It is very easy to be soft hearted (or headed) when you have not fully engaged in the  negative aspects of our business.

My understanding is that in addition to income requirements, minimum credit scores, etc, in order to qualify for FHA or Dream Maker loans, you must be a first-time homebuyer (defined as someone who has not owned a home in the previous 3 years) thus you may not be eligible for Dream Maker loan either. 

@Scott Carrillo It sounds like you just need to find an investor friendly realtor that can handle the same aspects for way less. 

You could say I'm an idealist at heart, but I don't let my idealism carry me away from the practical aspects of investing.  

And if it doesn't fit find a different aspect you didn't know and try that.

The great aspect for me is that there would be no land cost basis and I would get the experience managing the flip (I have never done a flip yet).I believe there is definitely potential in this deal but the issue is that I do not own the lot. 1) Is there a way for me to get financing on such a deal (hard cost around 500 k) say if I had a JV agreement with him but did not own the lot? 

Below is what you need to know that underwriting and programs guidelines don't tell you when considering a 223(f) apartment loan.AdvantagesHighest LTV in the marketEliminate refinance and interest rate risk with fixed rate terms up to 35 yearsLow fixed rates based on GNMA securitiesNon-recourse and assumable - makes for a great exit strategy especially in a rising rate environmentNo defined financial capacity requirementsNo geographic restrictionsNo minimum population requirementsSupplemental financing availableDisadvantagesLonger processing times - 120 days at a minimum (6-9 months is typical)Higher fees - HUD and FHA fees add to the overall cost of the loanMortgage Insurance Premiums (MIP) - Initial and annual premiumsAnnual audited operating statements requiredReplacement reserve escrows requiredHUD property inspections requiredOwner distribution restrictions and Cash out restrictions 2x a yearProperty condition is important to HUD, both during initial underwriting and over the life of the loan.

One aspect that most people do not consider, is the increased water and sewer usage bills due to the laundry.