You will be restricted to a conventional mortgage with a high down payment, not to mention a higher interest rate.Properties with more than four units are considered commercial properties and do not qualify for conventional or government-backed financing such as FHA or VA loans.How to Finance a 2-4 Unit PropertyYour next step is to identify the proper financing for your property.

There is a Fideo (land trust) in place with the Government which allows all normal US type real estate transaction.  

One possible approach would be to report code violations that might force the local government to force the squatter out on health and safety grounds, which could break the AP.Adverse possession in Texas is 25 years, Louisiana is 30 years while Costa Rica is 6 months.

If the tenant doesn't pay, you're not out an entire months rent because you've got the check from the governement.

I started off convinced to pay the taxes, and put the money in an investment plan, where I would have at least $25k per year to live off (interest) while the remainder of the money grows for retirement.After speaking with my accountant, I decided to put the money in a 1031 hold, as I cannot stomach giving the government such a large portion of the money.

With this all in mind, here lays the problem.1) The government is drawing down on it's Department of Defense personnel numbers meaning jobs cuts for the next 6-10 years.

If the numbers allow it, then great.Any FHA loan, 203b and 203k alike, do get fairly demanding when it comes to documentation and general paperwork, however what government loan doesn't?

There's no match for the military TSP like in the other government employees' TSP. 

Like most things governments do, they usually go too far when they meddle. 

A government agency that guarantees loans so that banks will loan to lower credit buyers(and others)similar to Fannie Mae.