@Michael Dunn  if you don't have to accrue any more debt, I would wait until after you get the FHA property.

We are trying to decide between a couple different houses and this really peaked my curiosity and I figured some of you experts might have some experience in this department.

I've got a ways to go...but my motivation, excitement, fear and curiosity keep me going.

Out of curiosity what are penalties for violating this? 

I don't typically look at profiles, unless someone strikes my curiosity.

The tax buyer has the right to pay and post subsequent years' taxes at 12% per year or part thereof (meaning the full 12% accrues on day 1, 24% on day 1 of year two, 36% on day 1 of year 2).

If the bill accrues to the property and not the person, I would add the cost into the rent and pay it myself.  

I’m basically letting that interest accrue but keep in mind it’s only paying around 1 percent.

I'm completely new to all these terms and real estate in general (aside from pricing, I've watched the market since I was young out of curiosity and dreams... lol) so I didn't realize you called it "House Hacking" until I researched what you posted. 

Just as curiosity, why wouldnt you purchase it if they planned to stay a while?