So, this isn't an issue where its always a simple no-brainer type decision as you made it sound like.

You definitely want to go with a direct lender that is licensed and specializes in the types of projects you're looking to get into .

You can still claim material participation and there are other deductions based type of rental as well.

Check out this 10-Part Series published here on BP on all you need to know for this type of loan!

I have read materials and watched videos, but it seems like I need to take the next step and see if anyone can help guide me through all the processes.

My concern with an FHA loan is that we immediately become a less-desirable option for a seller in a competitive market due to the loan type.

It is a very stable and mature type of business IMHO.Frankly just providing the best service with a lot of options is the best way to succeed I think.Like @Andrew Steffens does.

Please feel free to reply here or contact me directly if you have expertise with this type of cross-border tax situation.

The best strategies for any type of cash flow are coliving/rent by the room (would recommend Homeroom for a passive hands off turnkey type investment that still will produce income), multi-family 2-4 units where a rehab/value add is needed, or buying a property with an ADU/Guest house and treating each unit separate unit. 

What type of properties are they ?