He showed proof of funds and provided further references so we compromised on an 8 month lease with 2 months deposit, and will write a normal 1 year lease next summer with proof of job and a cleanliness house inspection.

People are compromising heavily on commute.

The only problem with the FHA loans is that you have to pay PMI which is an insurance payment that the banks require in case you default on the loan, but if you have no money to get started this is a compromise. 

Setting a dollar amount and limiting to structural might be a good compromise. 

Use mesh tape with a setting drywall mud to fix any cracks or areas where the paper of the sheetrock has been compromised then coat the whole wall with regular all-purpose or topping compound. 

Secondly, I'd talk with the tenant about what they feel is reasonable and find a compromise.

You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity so it definitely didn't compromise my cash reserves.Good luck!

Stackables are almost always seen as a compromise. 

You only need to put 3.5% down, so cashwise it won't get in the way of your flipping, wholetailing, and wholesaling goals.My first deal was a 4-unit up I bought with FHA 3.5% down here in Santa Clarita.I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity so it definitely didn't compromise my cash reserves.Good luck!

The only way you could find someone cheaper is if you compromise on quality or have a lot of doors.