nothing wrong with that at all as the property is being sold to 3rd party.

If you have equity and decent credit, a conventional Fannie Mae HomeStyle (or the Freddie Mac version) would likely be the better option instead of an FHA 203k loan (which will require a 3rd party HUD consultant to oversee the deal in addition to having the contractor involved). 

Quote from @Ricardo Lemus: Hi there,You guys probably went thru some of my post already and even help me with some experiences - Thanks a lot :)This time, after 6 months on this, I think part of my brain is saying that somehow I am in the right direction, and the other part is saying something is going on with the rent price I have set for my properties.

While they’re out partying, you’ll be home learning, analyzing deals, and honing your craft.

The signing parties are "stopped" from saying anything different after they sign the letter.Each Tenant Estoppel Letter states the attached copy of the tenant lease is accurate and was signed by the tenant, there are no other written or verbal agreements, the tenant has paid rent through a certain date, and there is no prepaid rent other than the current month.

Even competent 3rd party management can only mitigate, not necessarily address many of the issues that arise when owning lower tier properties & population growth alone is not a magic pill. 

This lets both parties separate rather than dragging out the relationship.

Based on your description, Party 1 seems like the safer choice.

But I just want to start the conversation so we can negotiate the terms so it's beneficial for both parties.

The tricky part is that if we hold onto it , we surely will be in the red if we decided to rent it out.