i would be purchasing the property with an FHA loan. and im also looking for solid cashflow + long term holding 

The bank I have been talking to for the loan / construction loan seems to be willing to apply that logic. 

I am considering selling a single-family rental in DC and/or looking for a new commercial loan to purchase the building as much as I (or we if my brother decides t partner with me) can to be a majority owner.

I know folks who bought strip malls and multi-tenant retail in 90s for 5-10 cents on the dollar at auction from Resolution Trust Corp after Savings and Loan crises in Texas, We are now going through similar deleveraging event after super frothy period in Multi-Family due to 0% fed funds x 20 yrs and many properties bought at 3-3.5 cap rates, especially in austin/dallas/H-town. 

Also would come with the stress of a loan, and debt servicing.

Build Rehab Budget into Loan. rather than fund from outside.

There you will be asked your criteria and then after answering a few questions you will be matched with 3-5 agents or loan officers in your area.

Another option was using equity to buy a 3rd home with FHA (the first 2 loans were under VA).

My current plan was to take out around 250k by refinancing to a 550k 7% loan from a $290k 3.25% interest loan.

If I was in your shoes, I would have them be actual partners and guarantee the loan with you.