In multiple instances where they told school districts that they could not collect fees from ADUs less than 750’ the school districts ignored the direction.  

There are a few instances where FHA is viable and conventional is not, but the same low down payment conventional loan options will almost always be a better fit than a similar low down payment FHA.  

For instance if you are using the funds to purchase more real estate and will be the person managing it, then perhaps you can get slightly more than the non-performing members of the company.  

Basically you need to understand the books for a multi-family property, and know what is average cost for each line item, and know which line items should be present.If something is out of line with what you expect it should be--investigated further.If you see no charge for Landscaping (Lawn Mowing) for example, or see it at $30 and you know the average for the area should be $1,000 for instance--find out why.Maybe they put in in Xeriscape, or maybe the owner just cuts it himself and the $30 is for a couple of pretty Azalea's he planted next to the front door to spruce it up for sale a bit.Or maybe the lawn has turned to dirt (and mud) from so many people walking across it (as in the pic below) of the Class-C apartment building. 

With 2 different color highlighters go through line by line and mark instances where they can get out of the sale and instances where you can get out of the sale from your own understanding.

Establish where rents eventually need to be, so for instance $1,100.

Assuming you don't already have experience buying and managing a rental property, a great place to start would be house-hacking (a single fam house, a duplex, tri, or quadplex).There are MANY advantages of house hacking for new investors, and you also avoid some of the disadvantages of other approaches.For instance:-HH lets you take advantage of excellent debt terms of an owner-occupant mortgage (lowest rates, lowest DP, etc.).

There may be instances where the owner NEEDS to sell and the home is in great condition. 

For instance - a home owners association may foreclose on a property to get their HOA dues... they may only be suing for $2000-$5000.  

For instance, there are certain properties that are C class, but that attract graduate students (e.g.; nursing students, doctoral students, etc.), and many of these tenants are solid (they tend to pay on time, and are mostly respectful and easy to work with, in my experience). ...note that I said graduate students (not undergrads, which is a whole other niche).