This goes both ways too which favors the investor, many people in these inner city neighborhoods don't want to move to the suburbs, they want to be around their family and friends, people that are like them.

I would be pre-approved for about 280k and I make around 40k a year so I'm not sure what 15k would get you.Having the money ready for down payment and closing costs is excellent and would be a point in your favor for sure.Also, an option you can consider is having someone else be a co-borrower but in this case they would also have to follow the FHA rules I believe.

Also, will your next loan terms be just as favorable?

Do yourself a favor and buy better class properties that are truly turn key.

@James Vega Although it sucks to have someone steal your property, I have to say; overall, I think they did you a favor.

The tenant has some words that are more favorable to them with no documentation?

Now I am really hesitant to close this deal...Deal summaryLocation: Norcross, GAPurchase Price: $218kUsing conventional loan - 4.375%, 20% downpaymentmarket rent $1600-1650brand new (less than 4 years old) townhome, end unit, in a very favorable locationThis community/area has gone up $60k in the last 3 years and I thought there was some room for more growth given the market condition + desirable location. 15 year old houses are trading around the same price in the area, which gave me a little more confidence that this property could gain value in the next few years.

Make sure the tenants know you are doing them a favor.  

Just for reference a typical syndication deal would offer you a preferred return of 8 to10 percent after which profits would go 70/30 in favor of the investor.

I am open to co-saling to get comfortable and in the motion.