Obviously this may vary by market but we would not accept partial payments as it does make things more challenging legally if you need to evict them.

So I guess thats legal.  

Various legal setups can  mitigate a large part of this risk.  

The challenge with the FHA guidelines is the self sufficiency test.

Quote from @Jim Bryant: This is why it's important to understand how the legal system works before investing in an area.

- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)

Most times when people look into it, they decide to just eat their mistake because lawyers usually want a big retainer and legal fees add up quickly with no guarantee of success. 

I did that (posted the notice on the screen door and took pictures), however don't know if it's legally served. 

Quote from @Frank Barletta: It is more cost-effective and practical to install a large-size TV and get the Nintendo, Super Nintendo, and Sega Mini consoles.It comes with games preloaded, legal, and each to swap in case something breaks. 

But for large multi-family, that amount hardly covers your legal fees for one transaction, let alone down payment, due diligence costs, lender fees, other closing costs, etc.