3% down not fha/conventional has been around for a few months now.  

Most conventional loans require you to live in the property for 12 months prior to renting it out. 

Conventional financing is not an issue.

The problem being  there is a lack of good solid inventory.

I will be in the Orlando Area for the Florida National REALTOR Convention in August, are you going to be there?

There's almost zero likelihood of getting a conventional mortgage on a condo listed for less than ~150k in socal (even riverside) because they will all be >50% rentals, and as a non owner occupied property, Fannie May requires at least 50% owmer occupied.  

I think I've decided not to go with it, the inventory in the area is too picked over for a multi family house and I don't care if I live in it or not.

As we put on the other post, its very competitive & low inventory in the lower price points right now.

I've been advised that finding good Hard Money lenders is a smart route to go because my ability to pay 20% on a conventional loan is limited, at this time.

So, I'm under contract for an apartment building ($100k purchase and was going to go conventional with 20% down) and the appraisal fell short $4,000.00.