First, you shouldn't be giving credits...that will get you in trouble if your tenant has a half smart lawyer.Second, when I do SLO I do them out of an LLC...then I just sell the LLC.Third, based on the way you set this up (with credits), if you are able to sell your LO to someone else, you have to transfer the credits you've already collected to the new buyer.

The greatest part is, since you are already in a Conventional loan, there is no need to refi in a year, and now you still have FHA in your pocket for property #2.This is where working with the right LO becomes critical. 

Other LO's or company's may not know how to use projected rental income, I do and we can so I would say be careful swearing off Conventional due to bad experiences with LO's who don't know what they are doing! 

The right/wrong LO can make or break your future success, so this is a critical step to find someone who is truly Team Alex and specializes with house hacking strategies.Once preapproved, your next step is to find a realtor who is also Team Alex and focuses on investors, ROI, the intricacies of Chicago neighborhoods, etc. 

The LO I'm dealing with said he doesn't do them.

His insurance paid some but it took a l-o-n-g time to finish it all.

An area where the more knowledge you have the more money you can make creatively.I strongly suggest you watch the lease option (RTO or LO) videos on youtube.com in general.  

I have no experience with LO's.

Options are specifically mentioned in the SAFE Act and as Jon mentioned, you will probably need a mortgage broker/originator to put the deal together.I don't suggest starting with l/o in a sanwich deal, there are more issues and doubt they are fully addressed in any book providing current issues

. - Thanks for that tip of information, I will certainly keep that in my mind.I'm actually in the talks with a LO right now as we speak.