Should I work out the FHA financing, do some minor cosmetic improvements and hold onto it? 

Statistically both rooming house and C-D tenant base are much higher management intense.

It's also cheaper than hardwood and cheaper and less labor intensive than tile.  

I understand wholesalers/flippers find many deals through direct mailing and other more intensive searches, but would appreciate a nudge on where my time would be best spent looking for my first property.I would also like to note that I have my financing already configured and am fortunate enough to not necessarily need to worry about it at this stage, most of my concerns come from what is listed above.Thank you for reading!

If it didn't work out, you could still offer value to a new congregation or not for profit.  

I've paid close to FMV with favorable financing before and had it work out.  

That's why LH properties are a little tricky as far finding one that the numbers work out right.Correct, when the lease expires the landowner takes full control and the property is theirs.You can convert a FS (fee simple) property to LH, but I am not too familiar with that process.  

The pro formas will show high ROIs and in some cases they can be realized, but they usually come with oupled with issues related to an older property and a more management intensive tenant base.

There are varied opinions on this rei vehicle, but the one thing that seems to be agreed upon is that a management company of great quality is a must for the property to work out. 

West coast tenant base by and large is not as management intensive as tenant base in the Deep south..