Well, what would be happening is that your buyer would be buying your house subject to the existing note, since you can't legally sell the property without paying off that note or transferring the debt to the new buyer.

For co-living spaces, it’s important to confirm that lenders are comfortable with the unique rental model, as it can impact property valuation.

This means having to take a chance and take the property off the market for 2 weeksOption 2- Accept the offer with a provision that allows you to continue to market the property, knowing that there's a chance FHA may not fund the deal. 

So the property owner can never sell?

I might buy 1 property that has cash flow, another that has a great purchase price, another that has great appreciation prospects and yet another with great financing terms. 

He’s an investor himself, has a STR property management and has everything dialed in. 

Can they prove how long it takes to rent a vacant property?

Daniel,If its something you really like from all accounts, get with an inspector and property manager to give their thoughts on the area, condition of the property etc...

I have a client that lives in Hawaii but owns a property in DC area.

My neighbor did STR on 2 properties in Long Beach, but only allowed 30+ day rentals so that he did not have to register with the city.