Other than that, it is really a light doc loan with not many strings attached compared to a conventional mortgage.

Quote from @Louis Hamilton: The property is worth around 800,000 and has no mortgage on it.

There are quite a number of things that can make utilizing an FHA loan more difficult such as more barriers during appraisal, appearance of low qualification/little cash, typically longer closing period, likely higher interest rate, and PMI cannot be dropped without a refinance if 3.5% down.That said, just chain 5% down conventional loans, and make sure your duplexes pay for themselves.  

I am a licensed realtor based in Atlanta, Georgia, and I am currently working on obtaining my mortgage origination license.

That is the best option if you are truly trying to help a family member.you cannot get control of the mortgage, you can do sub2 but you are not in control, the bank could call it due if they see the property transfers title.The other way is for you to buy it from them at market rate, then rent it back to them at market rate.

You still claim the income as miscellaneous income and deduct property taxes and mortgage interest (subject to SALT and other high mortgage limitations) on your Schedule A, but that's it.2. 

Once each cabin is built we would like to take a mortgage out to recover our cash and then use to build the next.

I need help analyzing this property.Address:2542 Glenn Terrace, Mount Penn, PA 19606Asking Price: $209,000Taxes: $5087 (they are really high in my county)Renovations: $10K-$15KMortgage: ConventionalCredit Rating: 712 median1.

Have $500K mortgage.

I believe what I have in my case is a "wrap around mortgage".