Unlike nearly all FNMA guidelines, it hasn't been updated in over a decade since it is so rarely used successfully (but landlords sure as heck are frequently collecting above market rents and option fees on the 'rent to own' promise). https://www.fanniemae.com/content/guide/selling/b3/4.3/12.html 

He has been helping me a lot over the past month and some of the things he has had me do i feel was just a test to check my commitment and dedication.

The more I read and learn about investing, according to the bigger pockets strategies, the more questions I have.Wouldn’t renting in a low economic area, where homes are selling for under $100k, wouldn’t that also invite less prosperous and less responsible tenants who will more frequently default on rent?

I'm not completely committed to this deal but I'm using it more of a case study for when I am fully pursuing a multifamily.

I think some of it also depends upon timing (ie. when the infestation happens/became noticable).In many instances, there's a lot they can do to try and mitigate some of that risk of another infestation happening (ie. sealable, odor containing/closed trash cans, taken out regularly; regular cleaning of the apartment space; ensure food is in tightly sealed containers, even if in the refrigerator; early communication about any standing water or wood rot; wash bedding frequently -  a lot of people eat in bed, and this is an easy way to attract insects and pests because oftentimes most people don't wash their bedding nearly enough).

Self directed IRAs are frequently audited, so make sure you have your ducks in a row taxwise before making any moves.

I intend on living in the second after committing to living in the first for 1 year, but have heard mixed things and just wanted some clarification. 

Granted, you'd still have to land in a brokerage with an environment committed to your growth and success.

As I’ve started to use BP more often because I’ve made a commitment to focus on real estate and become financially independent thru investing.

My current wife asks the same question, frequently, but I don't know why because she is set for life with out real estate.