Its been 2 weeks now and I am yet to find a tenant that fits my criteria that I didnt think was that strict; 600+ credit score and 3x monthly rent in income.I would describe the property as "B-B+" neighborhood.

Then you have to come up with a set of strict parameters for:1 - Max price2 - Property Values3 - Min Rent4 - Size5 - Specific geographic area...which could be a small as 1 square mile.They are NOT to bring you anything that falls outside of your criteria,...but they will.   

There are some nuances for this program (i.e. no more than 50% of the loan amount can be rehab), but overall it's not as strict as the 203K.Outside of HomeStyle, there is no other Conventional option for rehab.For a regular Conventional loan, the loan amount is based off the lower of the purchase price or appraised value. 

Many of the Rental Units near UT are pigstys, but people still lease them strictly on location.

@Rob Pattison you also have strict foreign corp US reporting requirements.

My LA property cash-flows a little bit but the long-term appreciation, mortgage pay-down, and tax depreciation on that property are what really move the needle.In reading your post, a few thoughts come to mind...1) Let's say that your LA properties are all breaking even after all expenses are paid, well that means that your $500K combined salary is not required to pay for any of those assets and is going strictly towards your living expenses, mortgage on your primary residence, primary HELOC, etc.

If you are licensed to do residential loans then you must follow strict guidelines and laws to protect borrowers.

The conventional route is going to be a bit more strict, but it will be faster and generally have lower costs (monthly and upfront).

The current code is strict about living space requirement like steel/concrete PSI/vapor barrier.

Was very strict on my contractors bids, interviews, and who I trusted.