The house is a 1960's era split level with 3 beds and 2 full baths, however there was no existing master bedroom.  

Seeing your name reminds me of Tom Vu in FL back in the late 80's and early 90's era

I think part of the issue is that this unit is not served by HVAC, it has a single window A/C unit in the bedroom and baseboard heating units along certain walls, this is a 1960's era house.

Yes, it does require a little more paper work with the FHA, need to have the 203K Consultant involved and handle inspections/appraisals and such, but the fact that I can get into a property, have up to 6 months of mortgage payments included in the cost of the loan so that we don't have to worry about double rent/mortgage payments, rehab my primary residence the way we like it, save a 1930-1940's era farm house, and then refi into a conventional cash out mortgage later on and use that equity to go buy rental properties.......nice way to get started, without having to put up a lot of cash or live next to tenants/in town (I'm a RURAL kinda guy).

For example, in Austin Texas, the areas by the University of Texas is littered with old 1940's era houses that are not in pristine shape.

In the small cheap 70's era rentals with few windows, especially around the college, it's pretty common.

Agreed with @Rodrigo Parada, it's possible to find cashflowing properties in the GMA, we bought a few in the past year.

We've invested in renovating older 1970's era apartments to grab better tenants - and better rents.

We've invested in renovating older 1970's era apartments to grab better tenants - and better rents.

Tony Sera Hey there, Anthony!