With a 10% down payment, you can still leverage your savings effectively while keeping some liquidity for reserves and future investments.FHA Considerations: If you're considering another FHA loan, keep in mind the FHA rules regarding primary residence occupancy requirements.

A spouse  wants $50,000 of the $140,000 value of a real estate property being held in their spouse's SDIRA in Florida- an equitable split property state when it comes to divorce. The spouse who owns the SDIRA will NOT...

From reading your post, it seems that your monthly cashflow might be in the negative with all expenses considered.If you don’t go with the above, then you’ll be dependent on whatever you have set aside for cash reserves to keep the townhouse running.

If I am not reducing the principal, then I will add it to my reserve account.  

You’ll probably need to budget between 1% and 3% of the rental’s purchase price per year to fix leaky pipes, busted doors, broken windows, and similar items.Then, you’ll need to budget for capex reserves.

While I have some reserve and a HELOC on one of the properties, if something big happens while in school (busted pipes, fire, HVAC goes out, etc..)

What market study have they done to confirm the net returns of 10-15%2.

Establish a solid reserve fund (3-6 months of rent) to cover unexpected expenses or vacancies, which are inevitable over time.Make sure you're well-versed in local landlord-tenant laws to avoid legal complications.

Look for cash-flow near the 1% rule, hold $10k in cash reserves, and expect 2-4% appreciation. 

Talk to some HMLs and see what they are offering for rates and terms and what they will do for a deal review that can help you confirm your deal numbers.