This would have the added advantages of lasting longer, and reducing my insurance payments by about $80 per month.  

With research I've decided that the FHA loan will be my best bet to reduce the down payment to a reasonable level.

In my opinion for this deal to make sense I would ask the seller to carry the note with little down and have them reduce the cost of the houses to get you to a min 10% cap.  

Not sure what your index is on the equity line but they might be willing to fix the loan rate, close the end and reduce the margin which would reduce your note rate.

I have the feeling this would greatly reduce the number of deals the wholesaler is able to tie up.While I am usually no fan of government regulations, the licensing of real estate agents makes sense from a consumer protection standpoint.

Separation of duties reduces embezzlement.

The tenant in unit 1 mows the lawn and shovels the snow in exchange for reduced rent of $100/month.

I was pretty upset as it is not easy to find properties here and I was potentially going to lose this over what I thought was a useless flood insurance requirement.I called the insurance company and told them the facts and finally did get them to acknowledge if there were flood vents in the crawl space I could get a reduced rate since the crawl space was higher than the 2 foot flood zone listed on the map.

To @Roy N's point they do put a burden on sewage treatment systems but when they were first introduced they were heralded for keeping food waste out of the garbage and reducing rodent problems.

Asked my agent to quote the six unit for cash value instead of replacement and reduced premium by $2000/yr.