I've tried to give them the benefit of the doubt, but they do not learn from their mistakes and simply bury their heads in the sand.

Its a very poor situation for the original owner to be on the mortgage for years and years without the benefits of ownership and the control.  

It will familiarize you with the basic terminology and benefits.

It will familiarize you with the basic terminology and benefits.

I see little benefit in the FHA as an option as long as the 5% conventional loans are available now.  

In addition, when you have leverage you have the other benefits which @Ali Boone mention.

Option D: you are considered a "disqualified person" to your IRA and as such are prohibited from engaging in any transaction in an IRA or receiving any benefits from the IRA (directly or indirectly), therefore I strongly suggest you avoid this option if you wish to stay out of trouble. 

The decisions and actions you make today can lead to incredible long-term benefits, so it's great that you're starting now.A good starting point is connecting with a lender that aligns with your goals.

What areas/zip codes do you recommend?

This home was located in a zip code that is notorious for its ultra-modern design (though those homes are still sitting for sale).