I offered a private bedroom with bed, desk, chair, bookcase, wardrobe.

Not only will you be running the #'s and getting better at analyzing, but you'll be seeing what homes are going for in your market, what the rents are for 1, 2, 3 bedrooms homes, what supply & demand is like in the area, etc.

The house had a major drainage problem under the house where water would stand for long periods of time. ( it was not disclosed to me)The house had been in a fire prior to him selling it to me. ( this was not disclosed either)The seller was super willing to finance it to me at a price that was double what it was worth even if it it didn't have the issues.

It is brand new and in a highly desirable area in my city.  3 Master Bedrooms/3.5 baths 1900 square feet.  

See how this would be double-dipping?

On another note, you could buy some nice piece of house in homestead with that pre approval and perhaps rent out a bedroom or two until you save enough to seal out a little private unit for privacy and rent raise.

@Wendy Van Camp You've probably already considered this, but I figure it's always worth double checking! 

This person's father recently died and he didn't need to live in a 2 bedroom apartment anymore.

basically, they used jenweld from lowes double hung, double pane. 

If you rented a bedroom out of the house, you qualify for entire sale exclusion.2) You will qualify for 250k exclusion if you are single. 3) However, you have to recapture the depreciation you took on the rental portion of the house.