buy quality assets look for capital preservation over return..  

Exactly the strategy that @Zack P. is advocating for.People always focus on replicating the hyper-aggressive acquisition strategies and always forget about making sure their portfolios are also built for wealth preservation.

So if the 2nd lien holder redeems, it's good for you because you have preserved your current equity position (not increased the debt via advance), removed the lien from the property, and the taxes have been paid.  

Have the other person use the 5% down conventional multifamily loan, this will preserve the FHA loan for the 2nd purchase and will save 10% down on the second purchase by borrower #2.  

Cash preservation is key to this business. 

@Craig Peterson, I agree with the other comments; a lot of investors are just looking for wealth preservation. 

In most cases, especially lower income areas, the presence of hardwood would likely go unappreciated and it may make more sense to preserve that wonderful vintage material and actually cover it with another type of flooring (I've been using Trafficmaster Allure in my units, which I'm obsessed with) until it comes time you decide to sell the property and then expose the old wood, refinish, and use it as a marketing point to the next possible owner( think about how "rare" and "desirable" that same flooring might be after another 20-30 years if preserved). 

Until you are making a million dollars per year, then focus on preserving your capitol.

Then we setup other investment and savings vehicles like Roth IRAs and an HSA.  30% of our take home pay was being set aside.Then we read the @Scott Trench book Set For Life and a similar article he wrote (The Simple "Secret") about capital preservation, and it blew our minds. 

I asked the wholesaler to split the loss with me  in an effort to preserve future business.