I have cash for 3.5% down on a $1M 2-3 unit...I guess I assumed competition would be too tough going in with an FHA loan.You think going with an FHA loan puts me (or anyone) at a huge disadvantage?

The average foreclosure auction puts most investors at a disadvantage when having to compete with well funded, fund backed purchasers of said properties. 

Letting him know the situation up front should deter him from returning to the property uninvited and forcing entry.I would think that contacting the guy would make it official that he knows that the guy is living there, which would put him at a legal disadvantage.

I've made around a 12-15% annualized in the past 8 years, but have also realized the many disadvantages of the stock market. 

Disadvantages: Traffic can and will affect the market prices and also your rental prices when you leave. 

I just don't want to be giving up any rights or have any disadvantages as a tenant by renting on a tenancy-as-will agreement. 

And if you need cash, do a refi of the new property.Using the basis of purchase price when you set it up as a rental is only a disadvantage in that it lessens your annual depreciation allowance. 

@Jacob Holth - there are a plethora of posts and articles on BP on the advantages and disadvantages of an investor having his or her license. 

She points out some of the disadvantages that many don't talk about. 

Certainly are advantages and disadvantages to having such a clause.