You also need to consider that at a lower percentage of money down you will be paying a Mortgage Insurance Premium or MIP. 

The property owner's tax professional can help them with that and ensure they don't pay taxes twice on the same income.Disclaimer: My advice/opinion in this post is just that, my opinion.

Next up I'll be exploring what would the seller pay for peace of mind?

Ask your employer if you can have your pay split up into three deposits, one to investments savings, one to your checking account for personal use on a daily basis, and one to an emergency account you can tap into so you don't have to tap into your investment savings.

I currently use Followupboss, prop stream, I alternate between calltools and mojo, I've also tried smarter contactIm looking for a CRM that incorporates all of this but Im not paying a crazy amount.  

Now if I pass that income as management fees to S-corp, I pay $3.5K (SE tax) + $800 (LLC fee) + $1700 (CPA + bookkeeping) = $6K in total.

In return, they will be motivated to get a job and pay back every dime owed while lavishing you with praise.

I noticed that the previous owner let them pay half the security deposit and the other half later, which is a red flag.

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.  

Less licensees paying into the pot means everyone's costs go up.