I prefer natural gas heat .

Most all of the structures are fairly temporary in nature of construction, so down the road, re-purposing the land would be incredibly easy. 

Also, depending on how the value of the property increased by adding that third unit, plus natural appreciation and paying down on the principal, you could look at refinancing out of the FHA loan to get rid of PMI.

Naturally, there is a benefit to HVAC and Electrical contractors.

I actually expressed to them the need to exempt Mom and Pop Landlords (4 unit and below) and rental owners due to the onerous nature.

Leaving the same investor split of the profits in conjunction with the more conservative assumptions will naturally lead to a lower (and more believable) projection of investor return. 

Don't be pushy, be natural. if he is willing to sell, GREAT!

.- Any expense on line 14 "repairs" can only be added back with a bunch of supporting documentation matching exactly & based on a human underwriter's judgement call on the "one time" nature of it (and how that underwriter's mood is on that given day) on a one-off basis.

That business model works well for more static assets (private placements) but is not generally best for investments that are more time-sensitive in nature or involve a lot of transactions (rental real estate, tax liens, etc).There are a smaller number of firms that provide plans offering checkbook control. 

Getting excited is but natural.