I work with a lot of FHA first time buyers, mostly in Oakland. I am sorry to give bad news, but in attempting to be realistic,, I think Oakland is simply out of the picture. I just closed on a duplex in Oakland that needed work.. , it was a short sale, and it closed at $210,000 which was a steal. The only way we got it was having an "in".. The buyer was very lucky and she knows it. Anything listed under $200,000 is going to likely sell for higher, and is going to need work, which eliminates FHA,, unless you can get an FHA 203K rehab loan.. but you're probably still going to be up against that price ceiling.
Also, it isn't just investors you are competing against.. I can tell you from experience, you are competing against other first time buyers who have the same idea as you.. but some of them have conventional loans, 20% downpayment, which is usually more desireable to the seller, especially to banks that are the owner (REOs). They see FHA financing as taking longer to close, having a higher rate of falling out of escrow, and they know that many items are going to be called as needing repair/replacement by the FHA appraisers, who are required to call/flag peeling paint, non-working appliances, loose electrical wires, non-working or slow plumbing etc..
The old expression, "get in where you fit in" applies more than ever now in this market. You are clearly motivated and ready, but what you're looking for is not realistic. I know it is also competitive in San Leandro, Hayward, most of contra costa county, and north.. so I think you are going to need to research some other areas outside.. find a realtor to work with who knows other areas as well.
You will probably be able to find a small, starter single family residence in Oakland or other areas in your price range, if you are diligent.. It would have to be deep east Oakland or west Oakland. It doesn't sound like you are wanting that.
Have you explored every financing option..getting a gift from a relative, or City downpayment assistance?