When the appraisal was done upon purchase, the market rate for the identical unit next door was $1325.

I believe the application & requirements (regarding preservation) are close, if not identical, and would allow you to qualify for both. 

and I know that is accurate because 3 identical ones in the complex sold for that.   

But he offered a very nearly identical path forward that is actually better:- buy first primary with FHA- in 12 mo ++ after saving up another 5% down, buy next primary with conventional 95% LTV

He has at least 2 or 3 nearly identical posts, bashing a company that is his direct competitor (even though he makes it very clear that they are not competitors 🙄), so that could warrant a post coming down.

They are fully documented and fully legal.I don't know if a credit/criminal would show anything but you should definitely require proof of their ITIN to verify identity and their legal status.

We're able to compensate for that by requiring a co-signer (no double deposits allowed in NH), but the inability to validate identity on the screening platform through questions based on credit bureau records prevented him from being able to complete the eviction and criminal history screening.

Maybe bungalows are hot in your area which is why they sell for more even though they are identical in sq ft to other homes.Days on market is very important. 

I enter the data myself and then the tenant gets an email to verify identity and then the check is run. 

Since June 2018, 2 homes of identical or smaller sq footage within a quarter mile of mine, built within 3 years of mine, sold for $1,900,000 and $1,800,000 (each was on the market for less than 2 months before selling.