There is a deal available to us as we speak which I will get into shortly, but I feel it is unusual in the REI sense a would like to see if I can get some guidance on it.Where I am seeking help and/or advice here is in determining what to do first.

This was rather unusual so I reached out to them and asked what had changed. 

I’m originally from Florida so my approach may come across uncertain.

FHA approach is a solid solution allowing you to grow a portfolio right now with little money down.Issue is it must be owner occupied,however for how long I am uncertain.

Boulevard, Ocotillo Wells, Descanso.I've got kids too ... would be better for us to have a certain and sub-optimal plan than an uncertain optimal one.

I do not know about your area but I am pretty sure that the $1,295 fee would be illegal in CA or if not it would be highly unusual. 

I am uncertain myself, but the floor guy thinks it will be ok.   

Is that a common thing to do or would most LL’s turn us down just because it’s an unusual situation?

If they asked me that question I would simply say "No, nothing unusual in 5 years of residency" and leave it at that.

The only reason I would see to not keep a perfectly performing cash flowing property would be drastic uncertain market conditions, need for funds, control more debt, or to lighten risk.