Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work.Now that you have exhausted your Low Down Payment Options (Portfolio Conventional and FHA Conventional and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now.Keep in mind that this 4 step process I outlined takes time (anywhere from 1 to 10yrs depending on the person) so keep the big picture in mind but don't let it stress you out too much.

@James Masotti-- I would put together a quick excel sheet outlining the costs, depreciation, and return on investment over time.

@Steve Garner I have pet addendum with my lease that have pets, this outlines any and everything you can imagine that would happen with a pet. something to think about in the future.Go ahead and give them a seven day notice to cure the nuisance of the barking dog because it jnterfwres with the quiet enjoyment of the neighbors.

Make sure you outline in your lease with regard to the inspections.

Everything in the outlined green is in Palmdale. 

Does anyone have a document they provide to tenants that outlines the common turnover repair and cleaning costs that, if necessary, will be deducted from their security deposit?

Look at apartheid South Africa, where the population was 80% black/20% white, and you would have found the same scenario as you outlined - but you wouldn't claim that racism had no effect on that situation, would you?

I've been having a look around, but as there is such a huge wealth of knowledge here, it takes a long time to sift through the relevant content.I'm not so much looking for advice on how to buy from Australia (already have been researching this extensively, BiggerPockets was actually a resource recommended to me through that process), I'm looking for advice on whether the basic strategy I've outlined is a sound one, as well as potential risk factors or tips of things to keep in mind.Many thanks in advance!

Renting to a friend of a friend is likely going to be a very bad idea.Roommate situations often end up in a disaster.If you insist on doing this, besides worrying about the security deposit,  include a very thorough screening on this person; credit check, criminal check, review of past rental history, income verification.And a WRITTEN lease outlining the specifics of what the two of you expect from each other is a must.Gail

I found this online outlining what is needed,1.