If move again you could keep it or use a 1031 to move into a larger place say a 4 plex.I believe this addresses some of your concerns, but still gets you started in rentals.

Lets say a tenant calls you for a leaky toilet at 10:00pm.

The local market is not bad, Id say a B to C- area and it varies street to street.

just say a contractor recommended them.

What are the implications of: Purchasing a MFH (lets say a duplex) with FHA financing and 3.5% down - owner occupied Lets assume this place needs some work but is livable and manageableUsing cash reserves, put work into each unit (assuming no long term tenant), essentially forcing appreciation and closing in on 75% LTV (theoretically)After the 'seasoning' period, refinance into a conventional loan dropping PMI and hopefully gaining more attractive P&I paymentsConvert to investment property —> Move out —> raise rents —> repeatIs this a strategy that is utilized often?

For example say a tenant bolted and I was able to use the SD to cover my other costs I wouldn't take them to small claims court for only the ETF amount. 

I take from your suggestion too, that I might say a return "could be in the range of 10-12% but no guarantees" etc.?

Let me just say as a VETERAN of conflicts ... 2.

If you do the calculation assuming nothing down, your cash flow is $17 a month.I'd say a price around $285000 would be better.

Even seeing an office and shop thats organized properly can say a lot about a property.