Primary difference is that 5% down is all towards equity, 1.75% UFMIP is just money lost to you forever.Doing the nomad thing with FHA is for folks with shoddy credit, people that like being more in debt, or folks that just like giving an extra paycheck to their LO.

If you have little income and current debt, moving forward in real estate can be done but, you should focus on strategies that done require debt or much money.

Say I offer the debtor money to sign away his redemption rights, how do I make that binding?

Service your customers, service your debtors, service your properties. 

It just doesn't work unless you are absolutely sure you can sell off a few to pay down debt or the value will be large enough to refi out before the two years.

Have you checked to see if the debtor in ???

Definitely leverage up, especially if you have no personal debt or mortgage.  

So the better way to look at the constraints provided you know subject-to purchases well is like this IMO:-1 - 4/10 Properties (The amount changes from time to time) => Fannie/Freddie financing with you as the guarantor-Properties 4/10 – X => First choice is seller financing or subject-to purchases WITH Fannie/Freddie debt or seller debt.

Having no debt or having TOO MUCH debt or missing payments is what gets people in trouble.

There are many variables and many scenario's, but I doubt the debtor will walk away without some liability.