When a rental is taken out of service for personal use the accumulated depreciation goes away over a short period of time. 

The property had significant upside potential as it was priced below market value and required mostly cosmetic updates.

There are so many landlords that never update their lease or other documents.

So before I transfer ownership back and start a seasoning period, I thought I would ask if there were any solutions I am not finding.  

I want to create a fund that will allow me to purchase distressed homes, fix them up, and sell with owner financing (possibly including a 5 year balloon so as to be able to recapitalize periodically and give investors a shorter horizon).

I'm guessing they want some sort of updates during the rehab.  

You said in your post  "If the notice was delivered by mail then the notice period begins when the Tenant actually receives the notice."

There are quite a number of things that can make utilizing an FHA loan more difficult such as more barriers during appraisal, appearance of low qualification/little cash, typically longer closing period, likely higher interest rate, and PMI cannot be dropped without a refinance if 3.5% down.That said, just chain 5% down conventional loans, and make sure your duplexes pay for themselves.  

I've been updating things that need it and lucky enough, I can do the work myself to keep cost down for now, only because it be my first rental.any advise would be much appreciated. 

.: Quote from @Jennifer Turner: Has anyone ever sold a property with seller financing then later extended the repayment period or modified the terms of the loan with the buyers?