Given the competitiveness in Scottsdale, exploring duplexes or triplexes might be a more feasible alternative to larger multi-family units.

Transitioning to a Second Property with Low Money DownIf a second FHA loan is not an option, here are alternative strategies to minimize your out-of-pocket expenses:Conventional Loan with 5% Down: Once you’ve added equity to your current property, consider refinancing into a conventional loan to free up your FHA eligibility.

If you're looking to transact faster than that, then your only option will be private Buyers.Another alternative, other than the ideas mentioned above, might be to sell part of the land into permanent conservation. 

Here’s why and what alternatives might exist:Real Estate Syndication or Fund: Invest in funds that generate passive rental income, which can offset Schedule E losses.Real Estate Professional (REPS): Qualify for REPS to reclassify rental losses as non-passive, allowing them to offset active income.This post does not create a CPA-Client relationship.

Now, if you have an alternative interpretation of the Regs, please share. 

It was a big alternative church property you know mind benders. one parcel in the middle of their campus 20 acres. they acquired from an owner sub too the back taxs and they never paid 1/2 of one years tax's prior to coming into title..

That way you are an alternative rental option for those that cannot afford a single family home.

There are alternatives note investors have and thats new origination's where of course you will have some bummers but your not starting out with a defaulted borrower at the get go.

Other times the terms may be worse, but it’s worth it because you have no alternative.

There are alternatives rather than become a squatter and not pay and screw the landlords who work hard for their money / keep.