After some research, I'm thinking it would be a good opportunity to proceed with the offer and to set aside the "free" money for use for repairs/renovations and holding costs to have some extra cushion.There seems to be much debate on the use of credit cards in real estate investing, but considering my circumstances .. 1.  

Just a heads up - if you have strong relationships with church leadership and are getting into real estate, the YIGBY movement may be a great place for you to work in. 

This isn’t really a big deal though.Rent payments can be abated over unresolved maintenance issues and tenants failing to abide by S8 requirements.Many S8 housing commissions will not hold tenants accountable for damages they cause (tenant is supposed to repair or lose their voucher).

I usually suggest to my clients the equivalent of 3 months’ rent held in escrow and double the daily rent rate to be charged in the rent-back agreement starting after agreed upon move-out date if they are not out, with seller maintaining all utilities and repairs on appliances and systems until move out, especially if you’re planning to renovate, anyway.

There is a lot of work behind the scenes and you are likely to end up ahead. 

Hi @Jacob GuttmanCongrats on your job and kudos for planning ahead!

Also can I use an FHA loan to buy a distressed property that needs repairs?

They are not allowed to do any repairs or modifications, none, without written consent.

Initially, we didnt give them they money until work has been done but based on the work and relationship we built, we decided to pay this one ahead for the next project. 

Identify necessary repairs and improvements.2.