This is sending up some prickly hairs on my back.

My wife drives across town to get her hair done. 

Quote from @Michael Daley: This is why I'm thinking more about taking the STR route until I can refi with a better interest rate. 2 units (2/1) in a good area at $1.3 with some ability to update and has a garage or ADU capability would work if we can get $5000 per month for each unit.$10k STR rent on $1.3m property at 80% LTV  will be negative cash flow when properly allocating for all the expenses.  

Even if that is not your intention, the IRS could decide that is what it was which would mean that the seller would have lost his 1031 ability since he "sold" you the house when he accepted the first payment.

There is good leverage and leverage.I grew up a cash investor and was scared of leverage, but it limited my ability to buy more properties.

You deduct what you can from the deposit and charge them for the remainder.If it takes longer and the deposit won't cover the losses, send a bill to your departing tenant and give them 30 days to pay.

Remember, not all off-plan deals are created equal, and the right approach takes experience, research, and the ability to think long-term.

Thanks for any help’ Yes we're licensed there and FHA guides in one state apply to all states unless a state has a specific law that supercedes the FHA lending guideline.FHA is always 3.5% down minimum (in some cases less because you're using a DPA or down payment assistance program or 2nd lender to put down over all a lower down payment than 3.5%, Aka for instance 3.5% DPA + 96.5% FHA = 100% financing but just dont kid yourself this is fully 100% leverage and to be used with caution and carefully).In the case of 2-4 unit FHA is still 3.5% down payment @Matthew Kwan @Carlos ValenciaThere are rules regarding FHA such as:- primary residence - you must occupy one of the 2-4 unit property as your primary over 50% of the year and the underwriter needs to believe you will remain and have the ability to live in there, any deviation from this and you'll get a whole laundry list of conditions asking you to prove why you should be believed to be living or will live there (if this arises dont be surprised, it just means the UW doesnt believe you).- SS rule - self sufficiency rule - gross rents of all potential units 2-4  X gross rents at 75% needs to meet 1:1 or 100% of the monthly PITIA payment or greater.

To Mike's point, it can also harm your ability to move on with a new partner who probably will not be thrilled to learn that you're still financially involved with your ex... 

Do you think this will impact my ability to rent the property?