just looking to get my foot in the door on some passive income.

I buy it by the pallet, (about 2800 sqft at a time) a good quality plank costs less than $1.00 a foot for materials and glue.

I have done some reading on multi family and understand the economics form more of a 30,000 foot view currently.

The program costed about 10 grand and we footed a couple extra thousand in simple upsells.

One job i bid started all from footing to roof, client wanted to play GC of a 140k rehab job (he should or could, he is a busy architect), started to hire subs, next call he had framing, foundation, plumbing, and electrical open and A&E open, job is big enough and I said i'll send a quote, next call, only exterior framing, engineering and foundation open, simply said job is not enough to waste my time.

I'm not sure what other builders are doing out there in regards to splitting profits, but we are the property owners and also the general contractor.As far as costs, What are the comps, if you are saying that newer homes are selling for $300-400K - what is that per square foot?

Heres my plan :1)I want get my foot in the door by pulling out an FHA loan and owner occupying a multi family.

85% LTV for SFR investment properties is doable (not 80%-75%), but rates are never all that great (you can however "get your foot in the door" at 85% LTV and refinance after it appreciates a bit). 75% LTV is kind of what lenders want for investment properties. 

if the insurance is also expired I would not let them step foot on the property until the insurance is up to date.

Then I looked at all 60 zip codes and analyzed the lease price per square foot and cost per square foot and worked backwards to find out several zip codes to watch for multifamily properties.