Then after weeks of no return calls to the brokers or lawyers, they come back stating that they have reservations about the properties not being maintained (which of course is false) and that there is a leak on the property (that was fixed, they inspected) that they still don't believe was the cause of the water leak....even though the plumber told them so and showed the videos. 

Hopefully they have some construction experience and can either confirm for you what is needed or give you an alternative solution.  

With 1.4 M capital to invest, what would make more sense, put 1M down on a large apartment complex and keep money in reserve or spread out the capital among many singe family properties ?

Keep saving money until you land a regular full-time job again, get the job to confirm your salary, and then start looking once cleared by a lender.

Mortgage lenders randomly send people out to these properties to confirm they are in fact at least partially inhabited by the owners.

You should absolutely be able to find a commercial/portfolio lender that can accommodate...well, given that you have reserves, reasonable credit, etc. 

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

Hi Bigger Pockets Family,I was wondering how everyone handles their capex & reserves.

Also, I just confirmed with my lender (who has helped MANY house hackers) that you can do 3.5 percent down on FHA with a non-occupant co-borrower.The easiest, fastest, and best way to get answers to your questions will be to sit down with a lender (or 2 or 3). 

A seller would typically be responsible for their pro rata share of such a bill (buyer would need to confirm the applicable contract language).