Looking to purchase my first real estate investment as a vacation home for financing purposes.

Scope and Purpose.

I think it serves it purpose for now. 

Meaning, every two or more years strategically move into a home you have owned for some time which has a large amount of equity and maybe not been a great rental performer with the sole purpose of selling and protecting the capital gains from taxes.

I totally understand the purpose of the eviction half due to loss of employment etc., but this is starting to get ridiculous if the landlord can’t reclaim their property and have to just watch it turn into a drug/gang member house.

However, for purpose of this example we will have purchased an RE at 90% LTV that appreciated at 5% in the first year (I certainly would not project this high going forward, but as an example it works). 

My clients have not done FHA for this purpose (or any other) but it does require you to have 20% equity and an appraisal supporting that. 

I would love to help you find that deal you've been looking for in exchange for a front row lesson in acquiring Real Estate for investment purposes.

I would like to buy land and develop it for low income families

The purpose of PMI is to protect the lender on a small downpayment loan in case they have to forclose on the property, they don't want to end up under water.