At this moment, we have a contract on a condo that initially was to be a conventional loan and end up not possible because of the ratio.

Maybe offer a facilitator type service initially for a fee.

I didn't see how much you payed initially for your condo, so can't really say how much your PITI is, but my advice would be to re finance out so that you essentially break even monthly, then take that & invest in a section 8 multi family to balance out your portfolio.

The area is actively improving but that initial sale wasn't quick.

This is called the Tidewater initiative.

The building list price is already creeping up on ARV if anything I may loose money initially on the deal until the property was held for some time.

I recently came upon the perfect BRRRR - one in which an 85%  ARV LTV Cash-Out Refinance would return all of my initial out-of-pocket cash for the purchase and rehab. 

If they used all their initial money to buy the place then they are back at zero, have very little equity in the property, and are only cash flowing a few hundred a month, that's not enough to go buy another property in just a few months. 

You have up to 6 months to Refinance and are able to recover up to 80% of the new appraisal amount, provided is does not exceed the initial purchase price. 

By advising them to start with a new construction they avoid, hidden surprises and the initial rehab work.