An acquaintance approached me because she knew I was getting into the business.

Further, I explained that if they brought me the deal, I would use them as the listing agent once the house was rehabbed and ready to list back on the market.What I found however, was that most the agents I spoke with said they don't work with investors.

Is there anyone who has taken the FHA approach?

Do you think the person is trustworthy enough to be brought in, remember this is your business so think wisely.

I think what people are referring to when they say to look for off-market properties is to get a deal by approaching the seller directly. 

what approach should i be taking ?

You and I just live in a place where getting that education is financially riskier than elsewhere.Maybe I'd take a different approach if I were 50 and seeing retirement on the horizon.  

I am new to investing, but was brought up in this field under a very good mentor as an apprentice.

I've been approached twice by organizations that rent houses for veterans (disabled and not) to share. 

If you want to buy one of those, you have to approach the owner directly and then offer him/her a deal that'll AT MINIMUM pay off their mortgage & any other related fees from getting behind...sometimes you get lucky with those offers, sometimes you don't.