Worst house on best block, that’s really the secret. 

What's the annual ROI on the cost of the points to you in terms of savings?

Hey Alberto, welcome to the BP community.Wishing you all the best on this new journey.

BUT, the might cause more issues because 550k is already on the small side for a 5+ unit building product. 

They could easily pay 50% two weeks early, then pay the other 50% on the first so they are always on time.

Are you sitting on AT LEAST $50-$100k in CASH?

They are a little riskier due to longer selling times though (50 days on average).

However, when reading the FHA Loan Contingency Exhibit, section 20 reads: Home Warranty:If the improvements on Property are less than one year old at the time of Closing, Seller shall, if required by FHA, provide a home warranty certificate acceptable to FHA.Does this mean I have to personally warranty any issues on the property that may arise within a year or buy a home warranty from a company that offers that.

Some doing IRR as an example but on a yearly basis and just combining the income and expenses as it happened on the first of each year.

@John Barton correct, on a single family home no lender is going to give you rental income to hep qualify.