Technically I (as a FHA borrower) would be renting more than 30 days to the LLC thus not braking any FHA rules, right ? 

As for appliances, it depends on why things are braking. 

(not to say that you are scamming people, just decribing the perception and perception can make or brake you in business.

Yes they've hit the brakes on growth, but that's probably an aberration in the macro-trend.

I agree with Jon that the garbage disposal is just another item that will brake.

If it means only braking even on your first deal that's fine.  

It doesn't sound like this is the case but the only time I have seen participation buildings have been in the case of a Townhome, I have seen some "renovators" in the Denver area get creative where they take a larger home and brake it into (condo/townhome) type units and then require each unit owner to acquire their own flood policy even though technically it is one building.

Sometimes just need to pump the brakes and take a deep breathe.

He said he would buy like a 500k property for 400-450k that barely needed any work, then he would rent it out just expecting to brake even at least on cashflow, but preferred a little cashflow.

There are also insurance and tax brakes with green homes.