Your best/safest bet would be a regular lease combined with an option to purchase.

Whether you want an Airbnb in a vacation spot you can use or a standard single-family home in an appreciating area, there are many options.

Virtually staging it could be a good inexpensive option. 

Option 3- If they have qualified for FHA; counter the offer to see if they can qualify for low downpayment conventional loan

Anyways- the good: For an entry-level investor, you will not have many other options.

FHA gets a bad rap because sellers and many agents think it's only for people who don't have the money so if I had 20 percent, but wanted to use FHA, I would present a proof of funds with my offer showing I have more money, but am using the FHA as a financial option so I can get an investment property as well somewhere else.

Needless to say, as you mentioned, that is no longer the case with current market conditions.I'm biased, but I recommend exploring and considering the option of vacating both units and renovating both sides for PadSplit.

A company adding more options to a plan instead of trying to Nickle and Dime me with upsells.

Or as our fearless leader, DJT says, predators & victims. 

To be more specific about the unique investment options we make available like buying homes with 5% down, or possibly 0% down, buying homes with up to 10% cash back, 10% immediate equity on new construction, rates in the low 4s, etc.