With $100,000 cash in hand, the property will be more like in the 400K price point if he were to put 20% down, leaving 20K for closing cost and emergency $.At the current interest rate and RE market is it possible to make 1K after monthly payment? 

At some sales they will even accept payment the day of the sale during the auction if that property has not been sold yet. 

though; (1) there are tenants in the house on a two year lease (payments are enough to cover mortgage payments), and (2) the Seller wants the option to buy back the property in two years.

Quote from @Jack Townsend: I heard David Greene mention a loan product that only requires a 10% down payment on the purchase price and 10% of the rehab budget.

However, I don’t yet have the funds for a down payment on another house, and I’m trying to figure out the best option for where to live while I rent the apartment.Do you have any recommendations for managing this transition or tips on finding a temporary place to stay?

Hello Kyle,When screening applications for the properties that I manage, I always look for:- Income of at least 3 times the monthly rent (verified through the employer)- Credit score of 580+- Rental verification with past landlords (no outstanding balances, no late payments, and the property left in acceptable condition)- No history of collections, evictions, or criminal offenses- No overdue debt (except medical debt)I have found this screening standard very helpful when finding tenants who pay on time and treat the property well!

The seller would need to include a clause saying what you CAN'T do, which is what a pre-payment penalty would address. 

Even if you only owe $26,000 on the loan, your payment will still be the same.

I offer an online payment portal to submit rent payments via ACH or CC - they "couldn't figure out how to use it" so I set us up to accept Zelle payments.

However you should consider if your loan has a Pre Payment Penalty.