FHA Loans:FHA loans are a popular choice for house hacking because they require a lower down payment (as low as 3.5%) and more flexible credit requirements.

Perhaps talk to him and go over your requirements in more detail. 

If I were to take the cashflow I made per year and the equity capture at the buy - the equity capture would blow it out of the water in most cases.

They are one of the best types of real estate investment because there are no toilets,water or pets.

I believe it would also be more work for me with more wear and tear because most of the tenants are not working so in a utilities included unit they use more water and we have a well.  

The benefits on the lending side are huge--lower rates and much lower down payment requirements.

It requires discipline and staying the course.

Because if you can make a 50% down payment it just seems that it is better to invest in other properties requiring less cash

That is what my lender required.

Many land purchases require cash, not loans and most people don't know that...or if you can finance it, maybe a bank will loan 50% of the price...and seems like so many people don't have that 50% to put down.