Would a Conventional or FHA be the best option based on our current circumstances?

I don't mind allowing pets at all under the right circumstances and upfront lease guidelines -- it opens my pool up to that many more qualified tenants! 

Does she/he have to be added to the mortgage in all circumstances, regardless of expected duration of stay?

I generally do NOT do Subject Tos or Wraps, as I find that in most circumstances, they are violating the Due on Sale clauses that are usually in the loan docs.

According to nolo.com "Approximately 20 states have laws that give HOA assessment liens (or, in some cases, condominium association liens or COA liens) super lien status under certain circumstances. 

So between that, my current tenant situation, and some inspection problems (unforeseen costs), it will be another month of vacancy on top of the added expenses.

This includes defining a work scope, Bidding to multiple contractors, scheduling work over a course of 1-2 months with multiple contractors doing different work, inspecting work done, adjusting to unforeseen discovery work.Most of the work that goes on in these boilers is welding, electrical, and mechanical (refractory work, cosmetic work, work on machinery).

It turned out the previous company had bad management and was paying over double in taxes than they should've been so once my dad figured that out and got it fixed  it was easy to sell.Its really is a win-win situation for most circumstances.

One of the big drawbacks of the home possible option is that the borrower is not allowed to own any other property (other than a few limited circumstances.) 

In these scenarios will banks consider the termites as unforeseen and re-negotiate on the price since they will now probably have to disclose it or would they just rather re-shop it.