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." -- Ben Franklin"When the people fear their government, there is tyranny; when the government fears the people, there is liberty." -- Thomas Jefferson"Any system produces winners and losers.

Rather they were just happy with the referrals that they were getting and the work that the federal government was giving them.

Lets assume all this is true and you have a friend who works at a company with a secret connection to HUD that is not publicly listed even though government contractors are listed publicly.  

It is also my understanding that most local governments have minimum home size rules that present a hurdle for tiny homes, but hurdles are just par for the track.

What I'd be trying to do is save money on commission and brokerage fee's.Many would argue that if agents themselves are circumnavigating the industry norms what kind of message does that send to real estate consumers.Even in a FSBO situation, I myself as an agent would still be required to observe all federal laws, regulations and state laws regarding my duty as an agent.As an agent I'd still would have to do all disclosures required under federal and state law (non-discrimination, fair-housing, lead based paint disclosure, etc., etc., etc,.And I would need to observe all requirements of the contract including home inspection repairs, lender required repairs, executing documents, etc.

You will have to check with a US CPA on how to remit taxes and whether they will be taxed twice; once by the receita federal and again by the IRS. 

Federal liens like IRS liens or State dept of revenue liens survive a tax Deed, but knowing what I know now I'm not too worried about those as the IRS rarely come after these properties, just be aware.

Conventional loans are the loans with the best terms and rates and they are governed by Fannie Mae & Freddie Mac (if you recognize those names). 

Lots of duplexes and triplexes in this area as well.Have you considered using a portion of your government retirement savings to buy properties?