Many come to a market first to rent and see then about putting down permanent roots. 

The purpose being that I feel her "friend" is no longer a guest and he is a permanent tenant.

With a strong international population and skyrocketing high-ask rent prices, the area has a permanent spot at the top of the most desirable commercial real estate markets list in the US.

In terms of the right property and absorption: I am not looking to sell it, my goal is to rent it out and refinance with permanent mortgage once the project is complete.

With 10% down FHA's mortgage insurance drops off in a decade instead of being permanent.

This being said my biggest question is: Is it better for me to buy my first home and build equity or just invest in a rental here and wait to live somewhere more permanent to buy my first home?

Use the help now to get yourself permanently off the government dole.

Bad credit is not permanent.

My understanding is that if tongue and axles are removed, home is strapped down, intended to be a permanent fixture, and title is surrendered to the state, I can request reclassification.

If this is permanent "I'm never going to sell or refinance" financing, you will come out behind.