Banks don't want to own real estate, they want to own interest paid on principal.

Furthermore, the property is cash flow break even, thus any gains will be in the appreciation, small rent increases in future years, and principal pay down.

The only circumstances in which a borrower with an existing FHA insured loan for a principal residence may obtain another FHA insured mortgage on a new principal residence.

If you have questionable morals, there are far more lucrative investment opportunities available to you than real estate (drug dealing, gun running, organized crime, etc.).I have a license in CA and am not aware of any legal or ethical requirement for me to disclose my license if I'm buying a property, as a principal.  

In order to find opportunities, you'll need to understand what information you want in order to contact the principal.

Understand too, a RMLO is not necessarily qualified as to knowledge or experience in underwriting (they are originators) especially in seller financed type transactions.Last item, balloon notes are allowed under Dodd-Frank, but the loan by a seller must be fully amortized and no balloon payment can be required until more than half of the principal has been paid.

I don't care how many people I hear say I buy notes for 10% of unpaid principal balance. 

It is better to be able to pay a lesser amount to redeem the property than the entire 20 year interest accrual plus principal.  

Given the facts that (1) I could get into a property for a measly 3.5% down, which would free up cash to invest in other places if I so chose, (2) I was already throwing away rent every month such that I could still be cash flow negative of $650/month (what I was paying in rent) and still be better off because a portion of my monthly payment would be building my equity and the rest would be tax deductible, and (3) I’m in my 20s and have the time to take a long-term view of appreciation potential, it was a no-brainer to go the FHA 4-plex route in Los Angeles, despite the fact that it is one of the most expensive markets in the country.One thing to keep in mind when looking for an FHA owner-occupied triplex or fourplex is that 85% of the market rents on all four units need to cover your monthly payment (principal, interest, taxes, insurance, and mortgage insurance).

EFFECTIVE GROSS INCOME: $89,330EXPENSES:Property Management: 7.5% = $6,700Insurance: $5,112Maintenance: 12% = $10,720 (I will likely modify this number after inspection one I have a better idea of the actual shape of the property)Taxes: $8,568Trash: $1,085Water/Sewer/Common Elect: $6,910TOTAL EXPENSES: $39,094NOI: $50,236Cap Rate: 8.37%Debt Service: $33,672 (5 yr arm - 25 year am, 5.0%)Net Cash Flow Before Taxes: $16,564Cash on Cash (Assuming 20% down): 13.8%ROE (NCF + Princip paydown): 22.1%DCR: 1.49Debt Yield: 10.5%Using 50% Rule: $83.28/unit/month