I gave the landlord +30 day notice that my current roommate is moving out, but that I would like to continue to live here.

One, since you brought it up, is the ability to find properties cheap enough (which requires a big skill in either negotiating or identifying deals others don't notice) that you can put the money into the rehab and your margins and the total price to the investor not be more than what it can appraise for.

The loans we are deciding between are the Fannie Mae Homestyle with the Homeready (to bring the down payment lower) and the 203K loan.

Do the above for about 2 weeks and you will start to notice trends and opportunities. 

One technique for finding deals that intrigues me is looking up NODs (Notices of Default) in the public records and then reaching out to the property owners (probably via postal mail) to see if they are interested in selling.It seems like there's a decent chance to find a highly motivated seller and perhaps a very good deal using this method.I am wondering if anyone in the forums has used (or attempted) this technique, and if so, what sort of results you've seen.

I am in the process of getting pre approved for an investment property and noticed the paperwork said I need proof of seasoned funds (2 months) in an account for the down payment.I plan on using a HELOC that doesn't get funded until later this week.

I personally let all my leases go month-to-month when they expire.Especially if you see the possibility that there could come a time when you might want to give them notice anyway, definitely let it revert to month-to-month. 

I don't know what the landlord did officially, but I noticed the couple were no longer living there a couple of months later.

Ryan,If you are really serious about making sure the subs have coverage, you need to have them name you as an Additional Insured and require 30 day notice of cancellation. 

Start out using FANNIE conventional rental loans and FHA occupant loans till your DTI is maxed out.