We manage properties in Florida and we live in Idaho.

If the R2O buyer gives notice on their current place and your deal falls through at the last minute, those tenants would be scrambling to look for a place to live.

You can likely find some of these close to where you live and can more easily find deals on these.

IDK where you guys live but I want 5-10k passive a month which means you are going to need a whole lot of these homes.

A fresh coat of paint in a modern neutral color and updated lighting can really elevate those spaces.Adding a deck or patio can be a great way to increase usable living space and boost value.

I'm about to do a rent-by-the-room/co-living property there, since current LTR rents don't cover the mortgage with these interest rates. 

After the fire in 2016 damaged or destroyed more than 2,000 buildings, 16,000 acres, with 16 lives lost, I think they are trying to be better about enforcement.

Great place to live great place to invest.

Just my 2 cents, but given the location, I would assume other than a doctor with a young family or a group of 4 friends looking to live downtown. 

Now, regarding FHA...You can use FHA to buy investment property, but you MUST live in one of the units as your primary residence for at least one year after closing.