I understand that with SFRs, my rent, maintenance, and taxes will be more but that is all factored in.My reservations with the SFRs are rising insurance and property taxes.

A hypothetical to see how people factor costs when rolling equity forward into additional purchases.For this example assume  you purchased property “A” for 100k, and put 25% down. 2 years later you sell it for 125k so you now have 50k (25k from your initial down payment + 25k in equity).

I'd like to find another home in Prattville for a rental or fixer (to rent or flip depending on different factors).  

The hassle factor of self managing is real.

(by itself probably not enough but combined with other factors it could happen) Arguably you have commited bank fraud.

@Jose LealI factor in $15k in soft costs and $10k contingency but it will depend on your specific situation. 

-  If so, then that total (for example...monthly debt service is $2,000 and you underwrite at holding for 6 months, then you factor in that you have a total of $12,000 cash that you will be putting into the deal over that 6 month holding period) counts towards your "costs" or "cash into the deal" that you need to factor in, correct?           

Hey Saed,Given your current situation, even though your W2 job isn’t related to your degree, the key factor for FHA qualification is income stability.

Only trial and error can be the deciding factor – perhaps.

So In SIMPLE terms; you are stating that REGARDLESS of whether the FULL $60K in funds paid to the Seller for the OPTION to buy the home at $300K is APPLIED towards that $300K "Strike Price" reducing the remaining amount due to them to $240K OR if only $30K of the $60K in funds paid to the Seller is APPLIED reducing the the remaining amount due to them to $270K - the Tax Treatment for THEM (the seller) is the SAME on the $60K paid for the OPTION ?