With conventional buying, You can buy 2 deals and now need to make more money to buy additional deals.

@Tim FosterYou can apply for a HELOC and you won't be charged interest on funds until it is withdrawn from the HELOC.Normally when you speak with a lender - he will ask you where the funds will come from.

Was planning on going FHA but just learned about conventional 97.

Lenders and agents may be more willing to handle different areas, but contractors may charge extra or just refuse to go outside of their area.

I was thinking about getting a house under 150 (rather 100 or yes) and get conventional loan.

Things that have come to my mind are:Finding locations - how to pay and willing companies with space or charititys with space to make it affordableHow to advertise for interested membersDo I need a license to run a group of this sortWhen to consider charging membersWhat to do during these meetingThese are the things that have crossed my mind.

Obviously, websites and broker leads I cannot charge for, nor should others.

You need to find one that doesn't charge insane fees and is reputable.  

Depending on fluctuations in your market, it is a lot easier to owe more than your house is worth when you are putting 3.5% down in comparison to the 20% down on conventional loans.  

save up that initial 20% for a conventional down payment, have another 20-30 % for repairs and emergency funds.