Often times in today's hot market, they are choosing to keep the property and sell it themselves @Lauren RoseThere are no income requirements on either fha/va loans nor the number of times you can do these types of loans.

Kristopher Edwards VA construction loans are available but often very hard to come by.

It comes in very useful when there are weird timeframes (eg, one month tenants A and B moved out of unit X, tenant C moved into unit X, and tenant D lived in unit Y)  and different numbers of tenants in each unit. 

Having said that, I also agree there are very often times where the listing agent might be more willing to do a deal with a direct buyer because they are looking out for their own interests.

Finding a small multi will be the challenge as they don't sell too often, but they do exist.  

Most newer properties are built to a higher elevation often raising it above the base flood elevation (BFE) as determined by FEMA maps, and thus reducing the premium. 

I also have heard horror stories of special assessments and i don't really know how often these can come up.

The contractors that have completed it really know the 203k well, and I've used these contractors often ... all with great results. 

Contractors will often charge overhead and profit of 10-15%.

Water line is in name of tenant and he pays bills every month.