Thanks Jason,Yes, we were very lucky but the timing was right and even though I have experience in real estate, luck is involved since our markets can change in an instant. 

This will save a significant amount of money in points and fees, so definitely a win-win.  

My intent was to create a win-win for the seller and myself.

Finding like minded people, this is the key to winning. 

It's really important to have good legal representation though because I've seen the tenants win sometimes when they really don't deserve it.

Professional tenants have done this very thing and in court have/will/may win.

We could never come up with a winning solution between the cost, zoning, location but I am sure there is a way to make it work. 

if everyone operated on the fear of failure, nothing would get done. you will definitely fail if you don't try. get out there and make a deal, win or lose, just do it. people learn from their mistakes and if you make one the first time out, then you have learned what not to do the next time

I would then no longer have an FHA loan attached to my name and I could purchase a fourplex and possibly do an FHA 203k on it to increase the value and have instant equity.  

What are the best ways to win a home on hubzu?