Now every time I see wells Fargo involved, I prepare myself for all wrongs and delays that could only happen with them.   

Sorry about the delay 

You can likely afford the downpayment (3%) on a FHA loan already or with minimal savings, so if you can find a 2-4plex in an area you like at a below market price with enough cashflow to cover your mortgage and have some additional cash to enhance your savings toward more property, just start looking.Check out Brandon Turner's blog on Hacking Your Housing and listen to the podcasts.

Even with the delays I feel he will do very well on this deal.

Try to be considerate while minimizing expenses. 

It is more expensive regardless but minimizes the chance that something done by a renter will effect your homeowners policy.

A quiet title action will update the chain of the title to include that reasonable steps were taken to assure that the previous had ample opportunity to dispute the loss of ownership to the HOA.Does this sound like pain in the butt, extra expenses and delays?

Monthly rent for each unit is about $1200/mo with the possibility of finishing the attic, either as a 3rd unit or for more bedrooms...so minimally gross income is at $2400/mo.Maintenance is about $200/mo.I'd like your thoughts on a subject to deal.

Then after your delayed financing you can "change your mind" and turn it back to a fourplex. 

Good to hear this wont delay my goals and aspirations!