Also I'm looking for recommendations for the best investment mortgage brokers in the Dallas area for FHA, Homeready, and conventional loans.

Because it looks bad to override another DE.Your best bet is to see if the buyer can qualify for other financing (there is a new 97% LTV Conventional product called HomeReady), or maybe your state has down payment assistance programs (i.e. here in IL we have a $7,500 DPA program through the state you can use with Conv financing depending on the area, purchase price, and household income).Hope that helps, best of luck.

If I had $200k I would invest in single family homes (using leverage by taking out a conventional loan and putting 20% down on 15 year notes) that have been sitting on the MLS for several months that had a desperate seller (someone maybe paying 2 mortgages)...this would take some work, patience, and a good realtor willing to submit a lot of low-ball offers...ideally I would shoot for nice C+/B- homes (at least 3/2's) that I could buy at a discount (buying with equity built in) that did not need too much work...maybe some updating...but nothing major like a foreclosure or something on the courthouse steps that required me to manage contractors on a daily basis.

all mortgage lending on the conventional  side these days is HIGHLY regulated.and any RMLO committing Fraud or ( CREATIVE WORK around would have to have a screw loose)...You must work with in the rules this is creative owner financing  this is the federal Gov

We started with a duplex FHA as well and refinanced to conventional when we had enough equity built up.

I would like to purchase my residence (not with conventional bank loan).

I'm planning on buying my next rental property at the end of this year using conventional financing.  

On conventional loans, private mortgage insurance (PMI) is required with less than a 20% down payment.

@Simon Shih homes sales have fallen and the inventory of houses have increased.

Should I now go talk to banks about a conventional loan for "livable" houses or a HML for "non-liveable" houses to get pre-qualified (from what I have been reading, banks will not lend on houses that are not in decent condition) or should I try to get a deal under contract and then seek financing?