I needed to buy my first investment and also needed a place to live.

Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

Additionally, young adults are living together with no intention of marriage.  

FHA loans require living in the home as your primary residence for 1 year after purchase.

With a fideicomiso, the gross income is taxed through a withholding tax whereas, with the corporation, the rate, you can deduct expenses but the taxation rate is higher.

I lived in NYC and worked for the city until I was terminated for not taking the covid vaccine.

What happens if he has a major expense? 

I should add I think it’ll cash flow only 850 a month after vacancy and reserves and expenses.

This does pose a challenge since that real estate is a lot more expensive than if you go more west and south.

If they're evaluating other properties and you have a good social presence that gives them peace of mind and a good sense that they'll have a nice living experience, that could be the tipping point if they're considering a similar property.