It seems that all zoning and setback rules will allow this.  

You'll need a qualified intermediary and need to follow all the rules for identifying property.

They offer pre-sales education and may try to ask questions if it very blatantly looks like you are trying to do something that would be a self-dealing or prohibited transaction, but they by rule and by their contracts do not provide tax, legal or investment advice.An advisor is going to be much more accessible and knowledgeable.   

I find that this can be a little subjective depending on what criteria you follow such as the 2% rule for example (so far, no multi family properties pass that rule but then again, markets are high right now).

My experience has been, these "First Time" or "Income Restricted" Loan offerings by various State and Local Agencies are all done through a Typical Lending Company (Mortgage Banker / Mortgage Lender) that has qualified with the Agency(s) offering the program.For Example, if you met the criteria for a "Texas Vet Loan", and were qualified for the program, all the processing and workup of the Loan package will be completed by Blank (Generic) Mortgage Company.

@Kenley LawYou're in a bit of a predicament.At the end of the day, the HOA rules will have to be changed.

Talking on the phone to people who haven't done their basic homework can be exhausting, so I don't call until further interest has been demonstrated.Like you, I don't rule it out, but haven't had Section 8 renters yet. 

These are both under the 1% rule. 

@Will Proulx the whole reason of my post on "how to get cash out of a 1-4 unit property" is to totally avoid the "whichever is lower" rule. 

I'm aware of the standard lease we have to use here in Ontario and the rules around LTB.