I'm considering buying a home with an FHA 203k loan.

We all assume this isn’t a house you’d buy with your own money.

An investor who is buying the duplex next to mine wants to trade a duplex he owns in a neighborhood nearby so he can have 2 duplexes next to each other (long story no need for those details). 

We are not looking to buy in class c or d.

@Travis TimmonsI had the same reaction as you did, but I held off on posting since I don't yet invest in STRs (I'm all LTR so far, and looking into my first MTR).Buying an STR "to offset income" makes me nervous as well...

I would never buy a home in a flood plain. 

If so, they can sell within 2 years and not pay capital gains taxes on the sell of the home.They could take that money and buy multiple rental homes in other areas if they wanted, or use the money to downsize in to a different home while still having money left over.

And the locals in Highlands have been fiercely debating STR's and regulations for the last few years, so I wouldn't be comfortable buying there.

Hi BP community,Buying 6 properties in St.

Investment Info:Single-family residence buy & hold investment in Seminole.