My personal opinion is that they are a waste of time and money (under normal circumstances).

All because of unforeseen stuff overlooked during inspections.But you know what, I'm ok with these mistakes.

You do indeed have some unique facts and circumstances, but the IRC has an opinion on them.If a residence converted to rental property is later sold at a gain, the basis in the converted property is the original cost or other basis plus amounts paid for capital improvements, less any depreciation taken. 

@Adam Porter,If I was looking for my first deal, and my circumstances allowed for it, I would go with a house hack on a multiplex in the 2-4 unit range.

As a side note, it is most important for you to judge the honesty of the broker, given the circumstances. 

So, with the right down payment, it's possible to get a home again relatively quickly depending on the circumstances of the shortsale.Conventional is now 2 years after a shortsale, but requires some sort of extenuating circumstances and 20 percent down.

I've been looking at multi-families, and few ever get close to cash flowing with my specific circumstances, but there are some properties that could work... but only if the rents were increased.

If the appraiser genuinely thought it was worth more (or, less), the Report should reflect that.Unless the sale is a foreclosure or short sale (or there could be other circumstances), where an arms length transaction IS required LEGALLY based on the Lender's stipulation, then why worry?

@Huyen Nguyen Depending on your specific circumstance, you can do 3.5% (FHA) or 5% (Fannie/Freddie) conventional loan for a 1-4 unit residential property as long as you are going to occupy one of the units.For the property that you would buy as an investment, it will be 25% down.

Hey all new investor here from cincinnati, quick question regarding my circumstances with my FHA loan.