I knew I was missing some aspect the the tax break.Yes, FHA 3.5% is a very viable option for a 1-4 unit residential purchase as long as one of the units is owner occupied.

I missed the last one this past Wednesday. 

It's either pay more than the guy who is willing to overpay or just miss the deal.Any feedback from seasoned investors who have been doing this a long time would be much appreciated.

Congrats Account Closed we will miss you in Indy!

I would assume that the tenants trying to pull a fast one with this loophole are a littler rougher on paper which might allow for a screening qualification to be missed.

If not it may be a hit or miss and some instances you may find out after you have purchased the property. 

in hindsight, you should have bought the property sub2 from the owner as soon as he started missing payments. take over his payments for him and he deeds you property and walks away with no foreclosure on his record. its probably too late now as the bank will want to recoup all the money and most likely list it with an agent. good luck i hope it works out.

Your broker isn't a moron, he's right.However, he may be missing a key element here.

You need to have someone secure the property immediately or coincidentally, your furnace, HW Heater, and copper will come up missing within days of their moving.  

I've missed out on too many opportunities because I'm stuck in a meeting or on a task that had no relevance to my job what so ever.