The best possible scenario is to assume the mortgage of the previous borrower with zero money down.

If you don't have enough cash for the rehab yourself, you might borrow it from a private lender or a HELOC if you can.You may not be able to turn it into a highly profitable deal, but you might make a little bit and gain valuable experience both on the rehab and the deal structuring.

According to HUD 4155.1, more specifically 4155.1 4.B.2.b,"At least one borrower must occupy the property and sign the securityinstrument and the mortgage note in order for the property to be consideredowner-occupied".Regarding potential homes being fully occupied, during the sales process you'd inform the seller of which unit you want to be vacated in order to fulfill the owner occupied requirement.

From HUD themselves... 4155.1 4.B.2.bFHARequirementfor EstablishingOwnerOccupancyAt least one borrower must occupy the property and sign the securityinstrument and the mortgage note in order for the property to be consideredowner-occupied.FHA security instruments require a borrower to establish bona fide occupancyin a home as the borrower’s principal residence within 60 days of signing thesecurity instrument, with continued occupancy for at least one year.The entire text of the HUD requirements can be found here...http://portal.hud.gov/hudportal/documents/huddoc?

I suggest getting an authorization to release and a specific limited power of attorney from the seller/borrower.  

Dodd-Frank was designed to protect individual borrowers - homeowners - from predatory lending practices. 

Not an easy task as over the years, I have developed an ability to borrow private funds or do JV deals so I had never taken out a hard money loan and with all the lenders in this field, options are almost unlimited for a person at my level.As to the wholesaler, for once, I found a deal that hit my desk where true value was added.

It is pretty much impossible to buy real estate with no money down unless you are borrowing from family.

Another option could be to borrow against your portfolio to fund the large multi-family purchase. 

The way I have been leveraging is through borrowing from the seller - seller financing.