Just be careful to plan it correctly.Based on your figures you'd have to come in with a substantial amount of cash to pay down your loan to 75% of appraisal in order to "take out," or refinance out of the FHA loan.One solution beyond having a grip of cash is to buy the fourplex considerably under-market but the likelihood of that is two fold because you have to abide by the "health and safety," standards of FHA financing which can be daunting at times when looking at REO's, auction sales, and etc.Best of Luck,

@John Baker, what I mean is that as an investor your business card just as all of your marketing should promote what you do; help alleviate pain from home owners with distressed properties. 

He is planning on saving and buying another one in the next 2 or 3 years.While researching today, he discovered that Warren Buffet, Gates, Trump, and Kiyosaki are all promoting MLM now.  

I did more investigation and found that she only has one active trade and the other derogatory accts are from past medical bills from child health complications.

One is boarded up has not been rented in 2 years. the other they tried to sell on contract but the buyer put a tenant in is collecting rent and not paying on the contract and the other one the tenant just left and its 5k to rehab yet again and they are with the best management company in the market.. so if your bound and determined to go out of state1. find a market you like and make contacts with the locals there2. do not buy through LA based marketing companies what do they bring to the table they have never even seen the house your going to buy they are only loyal and talk up those that pay them.3. use the same common sense if you were buying a home in LA find a reputable agent get MLS listing do not trust ARV values from promoters those are blue sky. 4. get an independent home inspection just like if your were buying a home to live in.. do this before you close and make sure you know what your getting and ask for items that are problems to be fixed prior to closing.5. buy at the top of the market not the cheapest those will have problem tenants and its very likely you could lose all your money on super low end.Lastly if you are dealing with out of state TK go direct no need to pay outside selling agents  its just tacked on to what your paying for the house. houses out of state are just not sold like they are on the West coast think about it why are these companies trying to sell homes 2k miles away from them...

I don't want to copy and paste any links in here because most of them are directly from a company's website and I don't want to seem like I am promoting any of them.

My health and my family. 

We were very blessed.As far as real estate goals, my goal would be to become a successful REI and eventually set myself and my family up for a health passive income system.  

HUD does the owner occupant period because they are a government agency that is supposed to promote home ownership-FHA loans.

The short list of what I am seeing - very capital intensive - the repairs to the property needed to meet all code and health requirements typically require a construction budget that far exceed the value of the property.