After having conversation with my agent, she suggest not going in to FHA loan, but instead try conventional with 5% down, and getting HELOC after 6 months of occupation.

Suggest you do it out of the state if you have time and cash.

Any one suggesting keeping a tenant below market or slowly decreasing your monthly losses has zero business scenes.

In the meantime I have already contacted a local restoration company (Paul Davis, any other suggestions?)

I highly suggest you to read, "The Ultimate Beginner’s Guide to Real Estate Investing".

We would suggest working with a local community bank that can understand your overall financial picture, and structure a line of credit based upon your available equity and your ability to re-pay.

Then I hear news that Freddie will no longer allow lenders to contribute grants to reach the 3% down payment requirementI am looking for suggestions to overcome the down payment hurdle.  

Specifically we are looking at possibly buying a warehouse/retail building. 

Currently I have a tenant in a retail space that is up for a lease renewal.

I have used quite a few, but wanted to see if anyone had any suggestions here in Cincinnati.