So I can step into REI full time, and if I fall on my face, I can go back and make some cash, then try it again.My friends all see it coming, and ask if I'm 'doing it full time yet?' 

The problem you'll face is finding one in your price range or finding one that starts out cash flowing strongly.

The issue you will face is not doing enough deals to really know what you are doing out there.

So to wrap up, the main issue you will face is convincing the underwriter that you will truly occupy the property as your primary residence, while splitting time between 2 residences while your wife remains in the current residence, and that you will do that for a minimum of 1 year to fulfil the contracted owner occupancy requirements of the loan. 

@Luis Ramirez the problem most face is the fact of the matter that lenders do not allow borrowers to hold more than one owner-occupied loan at 3%-5% down.

The beaches vs Riverside/Avondale is a decision a lot of my house hacker clients face. I

We want to buy a beach casita/condo up in the Natal or Sao Miguel do Gostoso area.

To think they could lie to so many people at scale and get away with it, and do it with a straight face.. is making money worth it when you are knowingly cheating others out of theirs?

This is how I seek to structure the financing :Purchase price : $400,000    Down payment: 15%   $60,000Owner finance (2nd position) :            $40,000 The issue I face is the banks are reluctant to structure a deal this way and they say I need 25% of the down payment which I do not have.

I know investors who have built VERY trustworthy teams in other cities without ever stepping foot in the city or meeting the people they work with face to face. I