If you don't like this idea, please offer me your alternative ideas or best practices.

Be realistic, and if you keep losing these deals, start testing out other alternatives.

Propane Fuel Tanks- disconnect and store if leaving for long term storage.J.

Also learn more about potential financing options (A potential alternative to FHA is a Fannie Mae Homestyle Loan).Don't be in such a rush, especially with today's uncertainty.

Also I guess this boils down to the question of whether or not the goal of investment properties is to own them outright at some point or just keep letting a cashflowing rental continue to pay down the mortgage for you and use that extra cash you save towards alternative investments.  

Keep hustling and remember achieving is hard but sure beats the alternative.

Alternatively, should we use the money we are throwing towards our principle to invest now?

There are many other companies now providing excellent alternatives.

You are going to have to find some alternative financing and get creative if you don't want to wait. 

My goal was to take my commissions as a real estate agent and to invest in my first fix-n-flip or to buy my first property to reside in (house hacking) but the time has come to develop a new strategy.Although I found a cheaper alternative to purchase in Long Beach, CA (250 sq ft Studio; walking distance to downtown Long Beach; 3 blocks from Pacific Ocean: $150k list price; $80 HOA; Tenant in place renting $1,200 a month), I did not qualify for conventional financing.