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.

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.

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. 

The  rent controls or extremely lopsided anti investor is to join apratment associations and band together. https://www.naahq.org/advocacyYou can sign up for national apartment association or just google your local state oneshttp://rentalhousingsurvivalfu... 

You all have been extremely thorough and helpful.

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

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!

He gives realistic no fluff advice for those starting out and of course that's a huge part of BP audience not the guru's or the guys at are at the top already or say they are.. but real advice on how to work in a local market and do the things it takes to get there and how long it generally will take a person if they are dedicated extremely focused on the goal as Steve and his family were. 

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

.- They are extremely manipulative in their sales approach.