Each state can interpret it's laws to mean what they want it to mean for a private lender, but even the thirteen states that have requirements are vague on their definition of when that requirement is applied.  

How are readers to interpret YOUR post?

Maybe I am not interpreting it correctly...

Lease laws differ in different States so I cannot be positive this would be interpreted this way in Kentucky (consult someone with local knowledge).

If you go back to your readings, I bet they say that the "proceeds" of the sale must be reinvested (which you may have interpreted as profit).

I purchased a fourplex in 2013 via FHA and later refinanced into a conventional loan and I was looking to repeat that exercise however it seems like the underwriters on now interpreting the FHA guidelines how you are describing them.

Looking forward to hear opinions and maybe offers.With self employed you'll have to strategically structure your tax returns with your accountant and a loan officer who understands how the underwriter will interpret your income and this may allow you to qualify if done right.

However, another interpretation is that, you are simply creating a more accurate identification of the property that you purchased to hold for productive use as evidenced by your actual use and the two rentors.  

(edit: I'm sure there are multiple interpretations in the different juridictions, but looking at it this way covers your bases.)I say for now because it's likely that more and more states (money grabbers) will add extra licensing requirements.

@Terry Landon, if police officers were allowed to read and interpret leases, why would anyone need to go to court for an eviction.