2nd, Depending on the smells, you may want to check certain parts of the house  and apply certain remedies.

It almost feels like I am out trying to get a loan;(   Ultimately, I am the customer and it is been a great experience when treated like one, I am pretty sure that since I am paying all the fees, points, environmental, appraisals- this puts me the position of "Customer"  most banks do not realize this and instead treat you like they are doing you a favor for even letting you apply.  

So my options are doing an FHA rehab loan, paying that off almost immediately and then applying for FHAFTB.

Growing your tool kit to apply to your business is priority in real estate.

Connect with a local investor, bring him deals, learn then apply what you learn, you are no ready  Good Luck 

thankfully the market went insane and i was able to make a profit even with my inexperience, BP definitely influenced all of my choices and in hindsight if i applied more of the tips i learned from listening to the podcast and reading all the books recommended i shouldn't have made half the mistakes but live and learn. on to the next one!

Have a list of rules and apply same rules to everyone.  

I'm assuming this is a rental property and based on your description you likely would not be able to get "conventional" financing....meaning, "delayed financing" would not apply here.  

However, the gain exclusion rules do not apply to that portion of a residence previously used for business or rental purposes to the extent of depreciation allowable. 

On another note, I was under the impression that you could have multiple conventional home loans in Texas before you were required to apply for investment loans, which would only require 3-5% down.