I think they are just an extremely conservative bank and that is their interpretation of Fannie's guidelines.I have already gotten approved from some other banks (credit unions), so I'm not worried, but I am curious if anyone else has run into a bank telling them they need at least a 20% down payment on 3-4 units, regardless of it being FHA or not.

However, every company I find either doesn't insure non-owner occupied units or is extremely expensive.

It is extremely difficult for your tax preparer to know if what you give them is right without a balance sheet unless they dig into each transaction which will be very costly.

I would have to call someone that is extremely motivated to sell and willing to accept any offer despite what they had listed to accept the offer on the 1st call. 

Hopefully, I'm wrong but if not take into account for the families "house-hacking", it's an extreme and unpleasant sacrifice with a majority likely not happy with it.

You all have been extremely thorough and helpful.

I'm in Open Door Capital's Fund 4 and I'm extremely disappointed.  

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

This seems crazy as the risk is different, the rules of what you can do with the cabin is different, and most importantly the price difference between cabins on land they own versus forest leased land is extreme.

Of course we just had a few hurricanes, but that doesn’t make it extremely difficult to get insurance.