. $400k list price (I think someone already nabbed this but as a thought exercise I'd be curious what your views are).  

Should I make 2bd 1 bath in a quiet town 35 minutes from the big city a MTR with 2 queen bed sets or 1 queen and make the second bedroom an office or even an entertainment/exercise room? 

Give them a probationary period to work with you and give them exercises / tasks for them to do so you can evaluate.

So this will be just one more exercise in wasting time.

Then qualify for an FHA(meeting requirements of course) when it comes time to exercise your buy option?

If the seller defaults on the loan, exercise your option and buy him or her out.Find a Co-BorrowerEven credit-poor individuals can secure bank financing by finding a co-borrower with good credit.

Now, the bank goes after the borrower and the principal has two different issues with you, one may be some default of allowing the matter to arise and the new claim, that you failed to exercise your duties as his agent. $$$$$$$ Lost.Powers granted with a POA die with the principal, but other things can happen too, you're put in a position to act on his behalf, why would a buyer want to have a legal obligation to act in the best interests of a seller???? 

Do a Scaling exercise. 

Thinking of kicking things off with house hacking and maybe trying to work as a property manager or something similar to stay close to the industry.My wife and I went through a wonderful exercise–thanks to @Bruce Woodruff for the invaluable guidance–to define what's important to us, our values, goals and dreams.

My number one tip for anyone getting started in the acquisition phase is to exercise patience.