Good credit, income, low debt and even proof that I've completed conventional rehab loans in the past.

If you still have the ability to finance conventionally (less than 10 loans), this would be a possibility.

Ask your lender about those it is a little different for each loan type (conventional, VA, FHA).Make sure you know why your putting the home in an LLC in three years if you are not all that familiar with it today.On the finance, rates are low and cash reserves are always a good idea.

My point about the inventory just goes to the general supply/demand.

Through networking in my area, I keep hearing "FHA wont approve" and continuously see "cash or conventional financing only" on the listing.

REO agents aren't pushing much more than their own office's REO inventory.

Now, if you buy another house using FHA, then down the road you want to buy this house, you would have to go conventional....does that make sense?

Yeah interesting, on one hand I can see why it is happening as home prices can only stay down for so long..and this "housing crisis" has been going on for several years now...but on the other hand , what about the shadow inventory and homes that are yet to be foreclosed upon?

Not enough inventory and too much competition.

They can also order a new appraisal sooner than 6 months.If its just a BPO with a conventional loan then the bank does do multiple of these and don't have to wait the 6 months like for a VA appraisal.