They have some great webinars on a regular basis that I highly suggest.  

So I strongly recommend the salesperson route first.Also the classes aren't entirely useless.

My first inclination is that it could be a fha reverse mortgage that was foreclosed on as they are treated differently than regular HUD homes. 

I may be naive in my thinking, but in going a lease option route, you are at least seemingly trying to attract longer term tenants with a hope of one day purchasing.

I feel like having 8 rooms to rent out making managing it more of a full time job than going the traditional route, but also brings in higher rents and a vacancy may be 1/8 or 3/8 rather that either 50% or 100% vacant.Do you have any experience with renting by the room, any serious pitfalls I'm not aware of?

The protections under SCRA apply to active duty members of the regular forces, members of the National Guard when serving in an active duty status under federal orders, members of the reserve forces called to active duty and members of the Coast Guard serving on active duty in support of the armed forces.

@George TorresIf you do go the self directed 401k route, be aware there are rules that must be followed with properties owned in your 401k.

I am a regular rehabber in Front Royal, and have all the contacts you would want.  

I have been a Broker in Florida for 28 years and buy rehabs regularly.

If they are not advertising some sort of points as a fee, which is normal I believe just look at the regular banking system.