And you'll have the best rate/points options with a primary residence.Option #2 is great, especially if you're willing to move into one of the units (because the down payment minimum is just 5% or 3.5% depending on program), but as you mentioned it's really tough here to find small multifamily here.

Our local towns and rental assistance programs really appreciate those that try to work with their tenants which has helped me several times through easier permitting processes.

I would not invest with him nor buy his program.

Plus there is my new program, "improved super calculating  amazing mortgage system" or iSCAMS (tm) because everyone knows that putting an "i" in front makes it 37.8% better, I am charging $100 for that program.    

Can you give me some info on this program?   

Then as people move out do the exact same thing to those units.You can get in with an FHA loan at 3.5% or a first time home buyer program. 

Any feed back is welcome 

In Minneapolis, are there programs in place from non profits and the government to aid first time home buyers with costs?

But the programs you mentioned are designed for what you are after.

There are programs for first time homebuyers.