So, IF any repairs are required by FHA, you wouldn't be able to close on the property because your loan wouldn't fund without those conditions being cleared.So, your agent is telling you that a foreclosure property, likely to have repairs required by FHA would not be a good idea because there is no way to clear those conditions.On the flip side of what you are talking about, is the FHA 203K. 

Apologies the post wasn’t clearly laid out. 

IRS rules are very clear: disqualified person is not allowed to receive any direct or indirect benefit from his IRA.

I think it’s clear that if you have the cash and are a long term investor who is not dependent on the monthly cash flows of your investment, larger markets are very appealing.

They have more skin in the game then you do.Make sure you get clear title.

I am the only one on title and FHA loan.Wife owns a house, free and clear, out of state.We are attempting to buy a fourplex under her name only with FHA.

Clearly the risk is significant, you really have to go for the right subdivision in an area on the upside.

I've forgotten the reason my lawyers had advised against it but usually the people can't qualify for a loan and while I own my properties free and clear, carrying the mortgage doesn't achieve my goal of generating cash so I can reinvest or work on my other projects. 

Any investing you do will supplement your income now and after you retire so you clearly do not need much.

Maybe my original statement wasn’t clear, I was not suggesting a room in a private house but a full apartment renting each room out is doable.