The alternative to a condo for you would be a Duplex... gives you 2 units for one loan... if one person moves out,your mortgage is still covered by the other side.  

Alternatively, if foreign countries beat us to recovery, their investment markets may present better growth opportunities for investors which can devalue the dollar and force the end to any sort of QE (that'd be strange but not more surreal than current reality). 

If you don't like this idea, please offer me your alternative ideas or best practices.

Be realistic, and if you keep losing these deals, start testing out other alternatives.

Also learn more about potential financing options (A potential alternative to FHA is a Fannie Mae Homestyle Loan).Don't be in such a rush, especially with today's uncertainty.

Also I guess this boils down to the question of whether or not the goal of investment properties is to own them outright at some point or just keep letting a cashflowing rental continue to pay down the mortgage for you and use that extra cash you save towards alternative investments.  

Keep hustling and remember achieving is hard but sure beats the alternative.

Alternatively, should we use the money we are throwing towards our principle to invest now?

There are many other companies now providing excellent alternatives.

You are going to have to find some alternative financing and get creative if you don't want to wait.