I know that most pure investment properties require 20% down, which I cannot afford at this point.My question is about the legality issues of purchasing a property using the FHA loan (or a conventional loan with a low down payment).  

They do not meet any of the rules 1%, 2%, or 50% but they done well for us due to Self Management- No management feesNo Vacancy'sLow Expenses Rent/Market AppreciateTenant is paying down your mortgageIn addition to pure rentals, we buy personals turned rentals when we leave an area because my husband has a transient job (military)lower downpayments (VA- 0%, Convention 5%)Lower interest rateOn my website I talk more about our model, plan and business philosophy.

It sounds like you are going for a pure cash flow play.You've never been a landlord. 

I feel my background and efforts in design have helped enable that.Further commentary:A lot of the pure REVIT skills are being used as 'CAD monkeys' by industry, even when users have the degrees and are on the professional track to get their license, etc. 

Years ago I sold electronics and they pushed us hard to sell warranties, because they are pure profit.

Michael Brown I don’t know if I should laugh or jump up and down for joy with this one...a similar deal last year I looked at closed at about 2.5m.

I take joy in the grind. 

It's a guaranteed mathematical formula.Don't listen to the opinion, it's just pure math.

I am going to guess that you are fairly new to investing and even go a little further in that you have yet to buy a property for pure investment purposes.  

If so that will need to be likely where you live and work, where you can owner occupy a unit for at least one year.Otherwise you're probably looking at 20-30% down if it is pure investment property and then you can do that anywhere you can find one and qualify for the loan.Then I would be looking at almost any of the big cities in Florida or Texas.