Do you know of any lenders that work with Fannie Mae?

If the loan is large enough you can go with Fannie Mae Multifamily Scattered Sites loan. 

That’s how it is by us, and I wouldn’t expect that to be regional, since I believe it has to do with Fannie Mae backing loans so they can be resold.As far as seller splitting costs, is it a regular homeowner, or short sale or REO sale?

The one BIG advantage of small multis is the ability to get fannie mae financing.

:)Here you are, from Fannie Mae with your name on it: https://www.fanniemae.com/content/guide/selling/b2/1/01.html#Principal.20Residence.20Properties

And HUD properties are notorious for not being properly winterized, so if the property is in a colder climate there are likely water supply line issues.I would feel more confident about my low-ball offer on HUD versus Fannie Mae or any other seller.

@Gulliver R. the Fannie Mae/Freddie Mac regulations require a 25% downpayment on a 2-4 unit property.  

When Fannie Mae doesn't claim to have a firm grasp on something, she just throws it into the "self employment" income bucket.

I am hoping to obtain a Fannie Mae loan and transferring the title to a LLC.

Fannie Mae ['FM'] refuses cash out/refis on Texas homes that engage in STR, have 'boarders', or are duplex [2 to 4 unit multifamily].