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.

There are programs for first time homebuyers.

The 70% rule is reserved for talking points by the guy on stage talking to an audience who they’re trying to sell a coaching program to   It’s a get excited number not a do a deal number   The equation is: maximum of 65% of AS IS value.  

Like I brokered a 22  lot development of duplex's for a builder and just charged him 30k flat fee per sale.. they sold for 225k each back in 05 when I did this and I sold them all in one weekend at a big event i paid for in San Jose CA.. all to CA investors it was my fly and buy program I did in those days..

I was a featured agent for a minute and closed a few nice transactions from that program.

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

I would also be very interested in hearing student or JV experiences with Pete and his program.

20mm people in the last 3 to 5 years with no cash or social programs found a place to live.  

Check out the Note Assistance Program.

Any feed back is welcome