So what do you guys think, I don't want to be carrying another property for 30 years with an FHA and private money rehab, but would offering the finished product as lease option be an attractive exit to any of you guys?

If anyone is interested in getting coffee or planning a time to meet, it would be much appreciated!

You always hear this but I have never seen it be an issue.I got a loan on an rental condo several years ago in a 19 unit building where I believe there were 2 different owners that had 2 places (and none of those were owner occupied) so they both were over 10%.  

As I see it, landlords can be an asset to the neighborhood, or they can suck the life out of it.

No Guarantee what I suggested will avoid them calling you out on it, but anything less than that will probably guarantee it will be an issue.

The roof however, was completely replaced in 2013 with one layer.This would be an FHA loan with me residing in one side for at least a year and then moving out and renting both sides.  

Would love to connect with you and your girlfriend sometime for coffee.

I found just taking a seasoned investor out for coffee and/or lunch and picking up the tab goes a long way with getting plugged other ways to fund your deals than your traditional bank loans. 

And, of course, they want full indemnification for basically all but burning the place down themselves.I don't know if I want to start the relationship off with what I perceive to be an attempt to rip me off, even if I can negotiate it back down to reality.But before I do anything, am I wrong that this is outrageous?  

I  don't claim to be an expert, just someone whose had an LLC for my 5+ unit apt buildings for 10 years.