I have some points on Supplement B, but not nearly enough to qualify as all my effort was on closing high-value deals that fall under A.

That should be your buyer's concern and insurable title is "good and merchantable title". :)

I listed it for $2,600 and had 20 people show up to the open house, got 3 qualified applicants and the unit was filled immediately.

When you go to B grade or higher the ROI generally drops & your field of applicants qualifying does to.   

Be sure to consult with a qualified tax professional to guide you through this and to help you understand the tax consequences in your particular situation. 3) You don't go to a broker to setup a self-directed IRA.

In these situations we always give the current tenant the option of stay but you will need to have them reapply because they may not be qualified with the increase.

Six months reserves should be more than sufficient to qualify and conservative to account for any (eventual) unforeseen circumstances. 

There's nothing preventing the former owner from qualifying as the prospective owner-occupant as long as they meet the strict guidelines for being a prospective owner-occupant as set forth in Civil Code 2924m(a)(1). 

This change is for ALL borrowers, regardless of income, who can qualify for Fannie Mae lending on a primary home.

While you should take the first well-qualified applicant, you also need to keep in mind that you'll be making construction noise, so for example, your prospective tenant needs to know that in case they work nights.