One way to minimize vacancy is to lower your rent.

So they can boot me anytime and they are on the checking account and can see all transactions I find that about as transparent as I can make it..

I have heard positive things - expect lower overall returns in exchange for them doing the work! 

If they are legit and you don’t have any other offers then I’d have the conversation with them but I’d want a higher than normal down payment (ideally 50% or at least more than the normal 20%), a higher than normal interest rate (at least a point above the prevailing rate so like 9-10% right now, but you can structure it as interest-only payments so their monthly payment is still lower than conventional), amortized over 30 but with a balloon in 3-5 years, something like that.

My understanding is the key is to keep separate bank accounts and financial transactions.

The agreement reached was the landlord would lower $100 of the rent (current rent: $3100) in exchange for us to paint the two bedrooms.

So you got lower prices and lower interest rates coming.

Just not seeing a good use case for FHA these days other than the lower interest rate.  

If a bank sells a note to Dion at 87K, they know he's in the business of selling, he sells for 95K to someone else, that is an arm's length transaction, the borrower had nothing to do with it.

You can get the cashier's check and do any other banking transactions from the convenience of your home office or mobile device without ever going to the branch with any of these banks.