I would be purchasing it and have instant equity $15-20K.

Owner pays the lawn/snow - about $1,000/year, the water/sewer - also about $1,000/year, hot water (property has a Rinnai instant hot water heater) which runs about $1,400/year and he pays the electric for apartments 2&3 as they're on the same meter.Gross Rents: $18,960Taxes: 2,900Insurance: 600Lawn/Snow: 1,000Water/Sewer: 1,000Propane: 1,400Electric: 1,400Trash: 720Debt Service: 4,500Vacancy/CapEx: 2,500Leaves a profit of: $2,940/year.

It makes you focus on what you feel is the absolute single most important decision of your life at that very instant.  

That said, you can always refinance to a non FHA product and turn it into a rental...though you likely won't be in any type of instant equity position...

Good deals are getting snatched up instantly. 

We believe that we can add value instantly by increasing the online presence of the property.Even at the high vacancy rate, creative financing on down payment, and with accounting for property management and cleaning costs (which we plan to pay ourselves to do, but may want to outsource later if able), the cabins at their current rent price will cashflow, according to the actual NOI formula above, so we are feeling pretty confident in the purchase even if the value add play doesn't work out.

By line of credit he likely means one of two things:A business line of credit pre-approved up to a certain amount that he can tap instantly orMost likely a home equity line of credit (HELOC) on either his primary residence and/or other rental property with significant equity (the kind you get from appreciation) pre-approved up to a certain loan-to-value.

The economy can change at an instant.

*Travel Points with bank (Disclaimer: I do not pay interest on this since I pay it off instantly.

@Jared Church,You'll also want to read "Think and Grow Rich", "The Richest Man in Babylon", "The Four Hour Work Week", "The Instant Millionaire", and others you may find recommended.When do you turn 18 so you can legally enter into a binding contract and start doing deals?