The reason for the seeming imbalance is that there are branches of the city’s Department of Investigation and the Housing Authority that police the theft of government housing funds.

My goal is also to live in the residence for a year but that goal does not seem too attainable through the naca program.

Even though your handyman may seem reliable and hard-working now, the second that work is done incorrectly, all liability falls on you.

. $39 for $5,000$59 for $10,000Insurance only seems worth it when you have a claim, other than offering some peace of mind  

It seems like I keep running into a dead end with this question.

The CPA's above seem to have answered your question comprehensively, and just to summarize, you don't necessarily have you wait 5 full years, just fulfill 2 years of primary occupancy *within* the last 5 years. 

I did some research trying to find a good detailed lease template to have my tenants sign but none seem to be specific and exhaustive in terms of covering any and everything that comes with the type of tenants that one finds in these type of neighborhoods.

Driving around it really seems like it's street to street.

However, it seems to simply attempt to provide the revenue side of the equation. 

Definitely a question for a lender however this seems like a good option given your capital situation.