Meaning you can maximize your one time chance of buying a property with 96.5% leverage via a government subsidized loan - Considering the two above over the long term if you buy a multifamily you will have: 1) Created more equity via loan paydown and appreciation2) More cash flow and stabilityIn my opinion you want to go as big as possible when doing FHA.

All items are to be addressed prior to closing with follow up city inspection.The property needs about $60k in repairs or replacements of items such as driveway, windows, heating units, side walk etc based on inspections and estimates.

All items are to be addressed prior to closing with follow up city inspection.The property needs about $60k in repairs or replacements of items such as driveway, windows, heating units, side walk etc based on inspections and estimates.

Also if this is your first deal and you estimate 15k in rehab, I would have double that on hand before starting the project. 

I'm estimating property taxes and insurance at about $450 monthly. 

Although I don't think the wholesaler should've split the cost with you because it's not their job to do your due diligence for you, I do think think that there is a chance they are in cahoots with that contractor and are selling 'fake deals' to other newer investors and by not outing them they'll get away with it.

Estimates are just that but real numbers from real properties or real contractors will be helpful. 

As an example there is/was an estimated 3,000,000 SF of industrial space occupied by marijuana users in Denver out of 300,000,000 SF total. 

Subtract your Rehab estimate and Holding costs to get your Maximum Allowable Offer (MAO) amount.  

Why a lender wouldn't take the time to spell out for you what I just did and also give you a loan cost estimate to give you an idea of costs and interest rates at the current moment, is beyond bad service.