FHA or 203K Loan Lenders?

[Quenten Durbin]

I'm looking at getting into real estate with a house hack. The listing price is $99K and has been on the market for 400 Days +.

Since its been on the market for a very long time do you think it wouldn't be crazy to offer $80k? If that it too low should I start closer to $90k

Being a single family home with mother in law cottage, I should be able to get rental income of $800 while living in the cottage and a total of $1200 once I move out. It looks like it needs work but I can't tell how much work it actually needs from the few pictures on the listing. 

I don't know much about real estate so I've been reading books and articles about the topic. 

I used the credit karma pre-approval and got approved for up to $105K assuming the additional $800 rental income.

Depending on the actual condition of the house, should I go with a normal FHA or go with the 203K Loan to help with rehab costs?

Assuming I go the FHA route I'm looking at maybe $600-$700 for the mortgage.

Also I'm looking for recommendations for lenders.

Thank you in advance!