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.

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

Then invest the $10k in something that pays more than the interest you’re paying on the HELOC.  

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.  

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

Jay what you've got to understand about Josh is the fact he is simply lying.  

Investor savvy agents are few and far between so take the time to find the right one - you are not looking for your forever home and simply giving the agent a list of homes you want to look at which is what most agents do anymore. 

The reverse mortgage company wants buyout and I dont have over 200k to pay out.

This simply means you have language in your lease that states the landlord is responsible for paying utilities up to a certain $ amount (let's say $100 for the sake of argument).

If you rent it for 2 years and then sell it, you shouldn't need to pay taxes on the capital gains.