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The purpose of this test is to ensure that the property generates enough rental income to cover the property's mortgage payment, including principal, interest, taxes, insurance, and homeowners association dues (if applicable).Key Points of the FHA Self-Sufficiency Test:Applicable Properties: The self-sufficiency test applies only to 3- or 4-unit properties being purchased or refinanced with an FHA loan.

How will appraisers, lenders and tax authorities account for this? 

DSCR for example has less requirements like (No income, No taxes) it uses rents to qualify.

Alabama has the second lowest property taxes in the nation behind Hawaii. 

Also the seller got the title from the city on a tax sale and can only offer a quitclaim deed so is offering seller financing.  

There may be other ways to structure it, but yes, FHA would require him to qualify on income but if he has not been earning income as a wholesaler for 2+ years and has two years of tax returns to show for it, it is unlikely he would qualify.

My advise to you is to not using your full 80k to do a renovation but instead start off smaller (30k-40k).

Hey BiggerPockets Community,I’ve been working with off-market properties in the Nashville area and have come across some intriguing opportunities with strong ROI potential.

The individual merely acts on behalf of an actual beneficialowner as the beneficial owner’s nominee, intermediary,custodian, OR agent.Note: Individuals who perform ordinary advisory or othercontractual services (such as tax professionals) likely qualify forthis exception.