But just doesn’t work well in reality.

So we may need to be accustomed to the new reality that the house is expensive and will keep going up.

The reality is that I was a mortgage broker and lost everything including my own house and landed in bankruptcy in early 2009. 

As @Brad Hammond said, if you have a seller's disclosure that omits this, in theory you could have something actionable, but in reality, not, because you would have to prove they knew which would be very difficult.

This is not, sadly, as simple a question in reality as those who know little about plywood, particle board, or MDF want it to be.

Welcome to the reality of wholesaling. 

Reality check: renting out a room in your house is not going to give you enough money to start taking time off from work, especially if you're looking to build wealth.3.

However, after a few minutes in practicing the art of investing you come to find out that 1. real deals and 2.trustworthy providers are considerably more rare than capital.So, while their thinking is understandable for a total newbie, it doesn't reflect reality. 

So they think this is a big discount compared to Class-A MF properties trading at ~3% direct caps, when in reality the property has reached the end of it's life, and they need to slice that asking price in half.

See if you qualify, see how many people they've assisted over the past year, have them tell you the realities of your local market, and see what suggestions they have for helping you use the program if it is viable for you.