It's usually around 2 years with potential to extend in 1 year increments.The issue is that 5 years might not be long enough to breakeven on the improvements you plan on making.

The bank may say they have the option to extend it another 10 years, but that isn’t guaranteed.

It is for a 3BD (including master suite overlooking a lake), 3Bath, nice neighborhood.I'm trying to figure out the wear and tear I can expect from different prospective clients like:- Teenagers- Children- Boys vs. girls- Old vs. young- Extended family (e.g. grandma, mom, daughter in the house)- Other?

Almost all agents will say they are willing to work with investors, but you need to make sure you and the agent are a good fit for each other before you commit to any extended service agreement. 

They might want to work with you on extending terms.

You can always extend her lease if she doesn’t find anything in time.  

This usually only causes maintenance trouble down the line because the paint traps water up against the brick.Also, landscaping trim up the bushes, maybe some plantings along the bottom of the buildings.Lastly, what about a low white fence in front of the grass extending from each building to the center walkway.

Would you be concerned about the timing of the rehab extending vacancy to holiday season/winter and make it harder to find new tenants? 

And if they dont buy the home, I get it back and can offer it to the next Leasee/Optionee, or extend the lease period. 

This is important for the possibility of your loan getting approved but also a major factor in a seller's decision to accept an FHA financed offer over an investor who is paying cash or financing with a conventional or commercial loan.I would suggest taking a different approach with your FHA loan and looking for a property that you would want to live in for an extended period of time but also would cash flow if leased it after satisfying your FHA owner-occupancy time requirements.